Novak Financial Ltd. is interested in investing in Scion Systems Inc. Scions current dividend is $6.20 and its shares are selling for $40. The required rate of return for firms like Scion is 8 percent. Novak has conducted an extensive analysis of the company and believes that the dividend growth rate should be 4 percent. Should Novak buy the stock at $40? (Round answer to 2 decimal places, e.g. 105.25.)

Price of the stock should be

$Type your answer here

Novak Choose your answer here should not/should buy the stock.