You are analyzing stock of Azure Corp. Firm paid a dividend of $3 per share and its dividends are expected to grow at 7% in future. Currently, similar risks stocks have required rate of return of 10%. Using this information:

Calculate the Present value of the stock. (hint: dividend growth model)

A year later, a broker offers to sell you the same stock for $73. Most recent dividend paid was $3.21 and growth rate is still 7%. If you determine that appropriate risk premium is 6.75%, and risk-free rate RF is 5.25%, what is the firm's current required return (calculating r).

Using dividend growth model, determine the value of stock using new dividend and required return from part b.

Given your answer in part c, would you buy the stock at $73 per share? Explain.

Given your answer in part c, would you sell the stock at $73/share? Explain.