Ben Sacramento runs a hardware store chain that his grandfather created in the 1950's, and that...

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Ben Sacramento runs a hardware store chain that his grandfather created in the 1950's, and that is now jointly owned by him and his two cousins. Due to a dispute regarding the direction of the business along with the investments required, Ben's cousins mentioned that they would be willing to sell their shares if Ben is prepared to pay a minimum price of $90 per share. Last year, the company paid its shareholders a common dividend (Do) of $3.00. The dividends for the next 2 years (D₁ and D₂) will grow at a rate of 15%, and the dividends for the following 2 years ( D3 and D4) will grow at a rate of 10%. Starting in Year 5 and beyond, dividends are expected to grow at a constant rate of 4%. The return of a US Treasury bond is currently 6%, while the return of a well-diversified stock portfolio is 9%. The beta of this company is estimated to be 1.5. Should Ben accept his cousins' offer to buy their shares of the business at $90 a share? Ben Sacramento runs a hardware store chain that his grandfather created in the 1950's, and that is now jointly owned by him and his two cousins. Due to a dispute regarding the direction of the business along with the investments required, Ben's cousins mentioned that they would be willing to sell their shares if Ben is prepared to pay a minimum price of $90 per share. Last year, the company paid its shareholders a common dividend (Do) of $3.00. The dividends for the next 2 years (D₁ and D₂) will grow at a rate of 15%, and the dividends for the following 2 years ( D3 and D4) will grow at a rate of 10%. Starting in Year 5 and beyond, dividends are expected to grow at a constant rate of 4%. The return of a US Treasury bond is currently 6%, while the return of a well-diversified stock portfolio is 9%. The beta of this company is estimated to be 1.5. Should Ben accept his cousins' offer to buy their shares of the business at $90 a share?