Vast Inc., is expected to grow at a constant rate of 7 percent will pay a dividend of $2.75 next year. The current market price of the stock is $32. If investors require a return of 15% on similar stocks, how much is the stock worth and is the current market price a good buy?

yes, it is a good buy because the stock is worth $34.37

Yes, it is a good buy because the stock is worth

• no, because the stock is worth $34.37
• No; because the stock is worth $39.29