You are trying to value Company As stock. Last year the company paid a dividend of $6.00. Based on your analysis, you believe dividends will grow at a rate of 5% going forward. You observe the following market data:

Current risk free rate = 4%

Estimated total return for the market = 10%

Company A beta = 1.2

The current price of company As stock = $96 per share.

• Should you buy the stock at todays price of $96 per share, why or why not?