You are thinking about investing in stock in a company who paid a dividend of

$10

this year and whose dividends you expect to grow at 3 percent a year. The risk-free rate is 4 percent and you require a risk premium of 2 percent. If the price of the stock in the market is

$200

a share, should you buy it?\ (Click to select)

vv

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

vv

per share.

You are thinking about investing in stock in a company who paid a dividend of $10 this year and whose dividends you expect to grow at 3 percent a year. The risk-free rate is 4 percent and you require a risk premium of 2 percent. If the price of the stock in the market is $200 a share, should you buy it? using the dividend-discount model, you are willing to pay up to per share