apteres 10811 eBook Problem 11-03 An investor with a required return of 13 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: Firm A B Current earnings $ 1.60 $ 3.10 $7.50 Current dividend $ 1.50 $ 2.70 $5.90 Expected annual growth rate in 5% 3% - 1% dividends and earnings Current market price $ 23 $ 34 $ 44 a. 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: $ b. 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 16, what is the maximum price the investor should pay for each stock? Round yolu 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: $