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12. You know the following concerning a common stock: EPS $3.00 Payout ratio 25% P/E 10 Annual rate of growth of 6% earnings and dividends

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12. You know the following concerning a common stock: EPS $3.00 Payout ratio 25% P/E 10 Annual rate of growth of 6% earnings and dividends If you want to earn 10 percent, should you buy this stock? What is the maximum price you should be willing to pay for the stock

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