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

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(I need this in an excel file so that I know how to embed the functions. Please link the file if possible as I am unaware of how to solve this problem using excel.)