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Assume that EA is trading for $116 and the company has the following financial results: EPS = $3.73 Growth is projected to be 12% The

Assume that EA is trading for $116 and the company has the following financial results: EPS = $3.73 Growth is projected to be 12% The required rate of return for investors of this type of company is 18% Using EPS, and not Dividends in the Dividend Discount Model, would you buy this stock?

No. The value of the stock is $65.89 and it is trading at $116

Yes, the value is $65.89 and the company is trading at $116

Not enough information to answer

It depends upon the business cycle

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