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Vcast Inc., is expected to grow at a constant rate of 6 percent will pay a dividend of $2.5 next year. The current market price

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Vcast Inc., is expected to grow at a constant rate of 6 percent will pay a dividend of $2.5 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 $34.38 Yes, it is a good buy because the stock is worth $27.78 No, it is not a good buy because the stock is worth $34.38 No, it is not a good buy because the stock is worth $27.78

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