You are evaluating a company's stock. The company just paid an annual dividend of $4.00 per share. The dividend is expected to grow at 10% a year for 2 years. After 2 years the dividend is expected to grow at an annual rate of 4%. Your required rate of return on similar investments is 15%.

The stock is currently trading at $40 per share. Would you recommend buying the stock? Why or why not?