your broker recommends that you purchase xyz inc. at $60. the stock pays a $2.40 dividend which is expected to grow annually at 8 percent. if you want to earn 12 percent on your funds, is this a good buy? a. no, because the fair value is $54.80, which is less than the market price b. yes, because the fair value is $64.80, which is greater than the market price c. yes, because the fair value is $69.90, which is greater than the market price d. yes, because the fair value equals the market price
