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(A) General Electric currently has a stock beta of about 1.15 and an annual growth rate of earnings per share of 10%. If the current

(A) General Electric currently has a stock beta of about 1.15 and an annual growth rate of earnings per share of 10%. If the current stock price is $15, what is your best guess about the price in two years?

(B) Growth stocks generally sell at high multiples. They are a better buy because expected growth rates of earnings are higher. Discuss.

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