Coronado Financial Ltd. is interested in investing in Scion Systems Inc. Scions current dividend is $5.55 and its shares are selling for $40. The required rate of return for firms like Scion is 8 percent. Coronado has conducted an extensive analysis of the company and believes that the dividend growth rate should be 5 percent. Should Coronado buy the stock at $40? (Round answer to 2 decimal places, e.g. 105.25.)

Price of the stock should be

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Coronado Choose your answer here shouldshould not buy the stock.