The next expected dividend for Stock P is $1.25, the current price of the stock is $25.75, and the firm is expected to grow at a constant rate of 3 percent per year forever.

The risk free rate is 4 percent, the market risk premium is 7.2 percent, and the stock's beta is .8

1- what is the value of the stock?

2- what would your decision be as it relates to investing in the stock. Would you buy the stock?

Explain your decision.