Please help me solve the last question part d, would you buy the stock before the firm take on the project?

I will post my working here to all the previous questions to better understand the question.

Q2. (50 points) (Show all steps) If a firm just paid a dividend of $6.00 and the firm's capitalization rate is 11%(r=11%). a) What is the present stock price? b) What is the present stock price if the firm expected to grow at a constant rate of 8% indefinitely? What is my dividend yield? c) If the firm expected to grow at 15% for the next 3 years and after that the firm is expected to grow at 8% indefinitely? I. What is the present stock price? II. If I bought the stock today and decided to sell it in two years what is my annual rate of return on this stock? What is my capital gain yield? Explain why me rate of return is not the same as capital gain? III. How much should I be willing to pay today to receive the stock in two years from now? Why it's different from Po? Explain. IV. What is P8? If my required rate of return is 14% should I buy the stock today and sell it in eight year. Explain and show your work. V. If I bought the stock at year 0(P0) and I was able to sell the stock in year 3(P3) for $450, what will be my annul return on investment (HPY)? Explain what is my annul return on investment made ofr d) Given part "b" assume that the CEO of the firm is thinking to payout only $3 in dividend and plowback the rest ( $3 ) in a new project. The cash flows from this project are expected to grow at constant rate of 11% indefinitely and the right discount rate for this project is 13%, what is the present stock price? Would you recommend this project for the CEO. explain? Would you buy the stock before thefirm take on the project, explain? F=1l%Riv0=$4.00a)=$54.54.b)P0=rgD0(1+9),g=8%=11%8%$6.00(1+8%)=$216.00c)gSN=15%,gN=8%DV1=DN0(1+g2)=$h(1+51)=$6.90P0=(1+r)2DiV1+(1+r)2DiV2+(1+r)3D1V3+P3D1v2=$6.90(1+15%)=$7.94P3=rNNDiV3(1+9W)DD3=$7.94(1+151)=11%8%$9.13(1+8%)N$N=$9.13=$259.66 Ans: The presont shochprice is $259.66. (14) Rate of Retum =IRR=HPY:2.348.3304.34W5313.47.5312.28 P2at+2=(1+r)DiV3+P3=(1+11%)$9.13+$328.68=$304.34 * Using Trancarl cal cubtor Rateof Retum =11% CapitalGain=CGYCGY=P0P2P0100=4259.66$304.34$259.66100=17.20% Ans: The rate ctretumis 11%, and CGY is 17. 20\%, thenwe ofretom is not thesarre as: WIPWIP=(1+1)212=(1+11%)2$304.34=$247.009=$247.01 Ari The Wir differs hoon to as it does not accaud the duidends in the cash flow. (2) P8=rgDiv9(1+r)9=rgDiv3(1+r)93=11%8%$9.13(1+11%)93=$569.23P8at=8 ( Requed R ate of R dim =1f%)>(HPY=%), we donot buy the stoch and sel lit in the eightyear. Nowtheiect:rnewInewnew=13% P0=11%8%$3(1+8%)+13%11%$3(1+11%)=$108.00+$166.50P0=$274.50withhavectP0(Nenpport)P0(cp+b)=$27450$216.00=$58.50=Aald+$58.50value. Ans: The present stochmprivenithrew poict =$27450 - Idoneccommend the mewproat to the CEO as it add's vale of $58.50