The price of Jane's Book Co. is now $62. The company pays no dividends. Ms. Johnson expects the price four years from now to be $95 per share. Should she buy Jane's Book Co. stock if she desires a rate of return of 11%? Explain. (Hint: Evaluate this situation using justified price (intrinsic value). In this case ignore dividends.)

The justified price (or intrinsic value) of the stock is _______

Should she buy Jane's Book Co. stock if she desires a rate of return of 11%?