Suppose that NVIDIA Corporation (NVDA) stock is selling for $150.00. Analysts believe that the growth rate for NVDA will be 20% next year, 30% for the following 4 years, 10% for the following two years, and thereafter the growth rate will be 6% indefinitely. NVDA will pay a cash dividend of $.65 per share next year. Thereafter the dividend will grow by the same rate as the company. Stockholders require a return of 16 percent on NVIDIA's stock.  

Required:

a)    Based on the above assumptions, determinethe price of NVIDIA's common stock.

b)   Explainwhether an investor should buy the stock.