Voyager Inc. is a brokerage firm that has a policy to rate a stock BUY if it is trading more than 10% lower than its fair value. It is rated a SELL if it is more than 10% higher than fair value and HOLD if it is within the 10% band.

Maxis Bank stock is currently trading or $28.15. Dividends this year (D₀) were $2.54. They are expected to grow at a constant rate of 7% per year for the next three years and 2.8% thereafter. Develop a rating on the stock if the required rate of return on the stock is 13%. Show all your work.