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You are considering buying 100 shares of Merrick Industries common stock. The common stock is expected to pay a dividend of $3.50 a year from today; the growth rate of the dividends is 4%; the covariance between Merrick's return and the marker's return is expected to be 0.003; the variance of the market's return is expected to be 0.002. It is also estimated that the return on the TSX/S&P is 15% and the return on government of Canada T-Bills is 7%. Should you buy the shares if the current market price of Merrick's common stock is $21.00? Show your work.

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