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. The information is as follows:

1. FirmABCCurrent earnings$1.50$3.00$7.30Current dividend$2.10$4.00$6.60Expected annual growth rate in5%4%-1%dividends and earningsCurrent market price$26$46$52What is the maximum price that the investor should pay for each stock based on the dividend-growth model? Round your answers to the nearest cent.
2. Stock A: $
3. Stock B: $
4. Stock C: $
5. If the investor does buy stock A, what is the implied percentage return? Round your answer to two decimal places.
6. %
7. If the appropriate P/E ratio is 19, what is the maximum price the investor should pay for each stock? Round your answers to the nearest cent.
8. Stock A: $
9. Stock B: $
10. Stock C: $
11. If the appropriate P/E ratio is 4, what is the maximum price the investor should pay for each stock? Round your answers to the nearest cent.
12. Stock A: $
13. Stock B: $
14. Stock C: $