You have been given the following projections (expectations) for Cali Corporation for the coming year:
Sales = 10,000 units
Sales price per unit = $10
Variable Cost per unit = $5
Fixed Costs = $10,000
Bonds outstanding = $15,000
Interest rate on outstanding bonds = 8%
Tax Rate = 40%
Shares of common stock outstanding = 10,000 shares
Beta = 1.4
Riskfree Rate = 5%
Market Return = 9%
Dividend Payout Ratio = 60%
Growth Rate = 8%
If the current stock price of Cali is $42 , is this a good buy? Show all work