The last dividends paid out to firm ABCs stockholders were $5 per share. The current market value of the stock is $100. The dividends are expected to grow at a rate of 10% for the next 2 years followed by a constant growth rate of 6%. The required rate of return on the firms stock is 12%. a) What is the fair value of the stock? b) Would you purchase the stock? c) Calculate the expected rate of return assuming a constant rate of dividends growth of 8%.