Southwestern Bell (SB) paid an annualized dividend of $2.73 per share for this year. Its earnings and dividends have grown at 6% a year within the last 5 years and are expected to grow at the same rate in the long term. The rate of return required by investors on stocks of equivalent risk is 12.23%. If the current market price of SB stocks is $70 and you are a very conservative investor, would you invest in the stock?

A. Yes

B. No