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how to calculate this? An investor is evaluating the maximum amount they are willing to pay for a share of ABC Corporation stock. Using the

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how to calculate this?

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An investor is evaluating the maximum amount they are willing to pay for a share of ABC Corporation stock. Using the Capital Asset Pricing Model they determined that their required rate of return is 9%. They estimate that the earnings per share for the next 25 years is $7.00, but only $5.00 after adjusting for inflation . Based on this information what is the maximum amount the investor should pay for one share? Selected Answer: ~ b. $113.59 Answers: a. $159.03 b. $113.59 c. $125.00 d. $98.99 e. $104.52

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