You observe Thundering Herd common stock selling for $42 per share. The next dividend is expected to be $4, and is expected to grow at a 5% annual rate forever. If your required rate of return is 15.25%, should you purchase the stock?

		Yes, because the present value of the expected future cash flows is less than $42.
		Yes, because the present value of the expected future cash flows is greater than $42.
		No, because the present value of the expected future cash flows is greater than $42.
		No, because the present value of the expected future cash flows is less than $42.