From a strict valuation standpoint

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My friend is also a stockbroker and is trying to get me to buy the stock of a regional wellness company. The stock has a current market price of $27, its last dividend was $2.15, and the company’s earnings and dividends are expected to increase at a constant growth rate of 12%. The required return on this stock is 22%. From a strict valuation standpoint, should I buy the stock? Why?

Reference no: EM13924452

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