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Common stock has earnings per share (EPS) of $1.50, a payout ratio of 0.50, a PE ratio of 10, and an annual rate of growth
Common stock has earnings per share (EPS) of $1.50, a payout ratio of 0.50, a PE ratio of 10, and an annual rate of growth of earnings and dividends of 5%. If you want to earn a 10% return, should you buy this stock? What is the maximum price you should be willing to pay for this stock
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