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 = 1.2Average Return for S&P 500 = 8%

U.S. Treasury Bond Yield = 3.00%Company Growth Rate = 4%

Should you buy this stock? Why?