You are thinking about investing in stock in a company.

a$.$ The stock paid a dividend of $$10$ this year and you expect dividends to grow at $4$ percent a year. The risk$-$free rate is $3$ percent and you require a risk premium of $5$ percent. If the price of the stock in the market is $$200$ a share, should you buy it$?$

$($Click to select$),$ using the dividend$-$discount model, you are willing to pay up to $ per share.

b$.$ Suppose your cousin is also considering investing. She requires the same risk premium as you and has access to the same information. However, she is more pessimistic about the prospects of this company and expects dividends to grow at $2$ percent a year. Should she buy the stock?

$($Click to select$),$ using the dividend$-$discount model, she is willing to pay up to $ $200$ per share.