Error: file_put_contents(/home/sdp/web/themes-production.sdp-platform.com/storage/framework/views/bd392427fda80954729f2981f50762bb.php): Failed to open stream: Permission denied

The stock of Eagle Healthcare

Your personal financial advisor is trying to get you to buy the stock of Eagle Healthcare, a local drug and alcohol rehabilitation company. The stock has a current market price of $35, its last dividend (D0) was $2.50, and the company's earnings and dividends are expected to increase at a constant growth rate of 8 percent. The required return on this stock is 15 percent. From a strict valuation standpoint, should you buy the stock?
Include the solution for deciding to buy or not buy the stock.