The boardof directors ofAPI, a relatively new electronicsmanufacturer, has decided to beginning paying a common stock dividend to increase the attractiveness of the stock in the free market. The board plans to pay $2.20 per sharein the coming year (i.e., next year) and anticipates that its future dividends will increase at an annual rate consistent with that experienced over the period from 2013 - 2016 (see below).The company currently has a beta of 1.2, the rate of return for the market is expected to be 8% and the risk-free rate is currently 5%. Given this scenario, what is the current value of API's common stock? If the current market price is $40.00 per share, should you purchase this stock.Briefly, explain your answer. (HINT: This problem requires a three-part calculation to solve it).USE MS EXCEL TO EMBED YOUR CALCULATIONS IN THE CELLS (do NOT round your interim calculations, rather use links between the cells),

YearDividend

2016$2.12

2015$2.04

2014$1.96

2013$1.88