FMI Inc. is expected to experience a turnaround period for three years, during which its current dividends per share of $@.%) will be reduced by 30% annually for the next two years, and then to grow at 50% in the following year.Afterwards, its dividends will grow indefinitely at an annual rate that reflects a 40% dividend payout ratio and a ROE of 20%.The discount rate is 15%, compounded monthly.Computethe intrinsic value and dividend yield of the stock, which is priced at $38.50 today.

Should I buy the stock and why?