Ch 11: End of Chapter Problems - Stock Valuation X B An investor with a required return of 14 porcunt 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 C Current corrings 52.30 $3.10 $6,80 Current dividend $1.60 $2.00 $5.00 Expected annual growth rate in 6% 3% -24 dividends and earnings Current market price $ 22 $ 22 541 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 neare con Stock AS Std B Stock C: b. If the investor does buy stock A, what is the imple percentage returnaround your answer to two decimal places c. If the appropriate p/e ratio is 12, what is the maximum price the investor should pay for each stock? onuna your answers to the nearest cent. Stock AS Stock : Stock CS Ir the appropriate P/E ratio is 5, what is the maximum price the investors pay for each stock Round your answers to the nearest cent. Stock AS