Your broker recommends that you purchase GoTo Sports at $38 a share. The stock pays a $2 annual dividend, which (like its per share earnings) is expected to grow annually at 3 percent. If you want to earn 9 percent on your funds, is this stock a good buy?

SHOW ALL YOUR CALCULATIONS TO GET FULL CREDIT.

IF YOU USED A FINANCIAL CALCULATOR OR EXCEL, LIST THE INPUTS YOU USED. MAKE SURE YOU ANSWER THE QUESTION ABOUT WHETHER TO BUY IT.