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4. Say you are a stock analyst who gives "buy" or "sell" recommendations on the stocks you analyze and that Growth-Tech (GT) is one of these stocks....

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4. Say you are a stock analyst who gives "buy" or "sell" recommendations on the stocks you analyze and
that Growth-Tech (GT) is one of these stocks. If Growth-Tech's stock is currently trading at $27, what
recommendation would you issue? Your EPS projections for GT are as follows: 0.5, 0.6, 1.15, and 1.24
per share for each of the next four years. You believe growth is 8% long term and that the cost of
caDital is 12%.

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