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You have landed your big job and are making enough money to start investing. Your friend has told you about this great stock that she

You have landed your big job and are making enough money to start investing. Your friend has
told you about this great stock that she thinks you should buy. After doing all the relevant
research you believe that this might be a good investment. Based on all your work, you believe
(expect) that the stock will return 10% in dividends and share price appreciation over
the next year. You also have the following information:
Stock Price = $50.00 Net Income = $10,000
Company Beta = 1.2 Average Return for S&P 500 = 8%
U.S. Treasury Bond Yield = 3.00% Company Growth Rate = 4%
Should you buy this stock? Why?

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