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You are contemplating the purchase of shares of stock offered by Health Futures, a healthcare technology company that markets artificial intelligence ( AI ) product

You are contemplating the purchase of shares of stock offered by Health Futures, a
healthcare technology company that markets artificial intelligence (AI) product(s) to
health insurers and providers. Each share of stock has a current market price of $25.00
and has most recently paid a $2.00 per share dividend to its shareholders. Based on
information provided by an investment advisor, it is anticipated that the company's
future earnings and dividends will grow at a constant rate of 10%, but those estimates
are uncertain enough to justify a required market return of 20%. From a strict valuation
standpoint, is the stock worth buying and why?
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