# Professor M Rahman has a contract in which he will receive the following dividend payments for the next four years: $1, $2, $3, and $4. He will then receive an annuity of $6 a year from the end of the 5th through the end of the 12th year. The appropriate discount rate is 8%. Calculate the current price of the stock. (Note: Answer must be in number, ignore text, coma and maintain TWO decimal point, Example: 2.40)

7 points

If the current stock price is $45 should M Rahman buy the stock? * (Explain briefly)