An investor with a required return of $14$ percent for very risky investments in common stock has analyzed three firms and must decide which, if any, to purchase.

A$.$ What is the maximum price that the investor should pay for each stock based on DGM$?$

B$.$ If the investor does buy stock A$,$ what is the implied percentage return?

C$.$ If the appropriate P$/$E ratio is $12,$ what is the maximum price the investor should pay for each stock? Would your answers be different if the appropriate P$/$E were $7?$

D$.$ What does C$\text{'}$s negative growth rate imply?