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An investor with a required return of 15 percent for very risky investments in common stock has analyzed three firms and must decide which, if
An investor with a required return of 15 percent for very risky investments in common stock has analyzed three firms and must decide which, if any, to urchase. The information is as follows: W. What 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 Stock A:$ Stock B: $ Stock C: $ If the investor does buy stock A, what is the implied percentage return? Round your answer to two decimal places. % c. If the appropriate P/E ratio is 15 , what is the maximum price the investor should pay for each stock? Round your answers to the nearest cent. Stock A:$ Stock B: $ Stock C: $ 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. Stock A: \$ Stock B: \$ Stock C: $
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