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Four years ago, Nopay Inc. paid a dividend of $ 0 . 8 0 per share. Today Nopay paid a dividend of S 1 .

Four years ago, Nopay Inc. paid a dividend of $0.80 per share. Today Nopay paid a dividend of S1.66 per share. It is expected that the company will pay dividends growing at this same rate for the next 5 years. Thereafter, the growth rate will level off at 8% per year. The current stock price is $30. If the required return on this stock remains at 18%, should you buy the stock2.

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