Jane's sister-in-law, a stockbroker at Fidelity Investments, is trying to get Jane to buy the stock of Tenet, a for-profit hospital system. The stock has a current market price of $25, its last dividend (D0) was $2, and the company's earnings and dividends are expected to increase at a constant growth rate of 10 percent. The required return on this stock is 20 percent. From a strict valuation standpoint, should Jane buy the stock?

Provide the expected price of the stock E(P0)