Problem 11-03 \begin{tabular}{|c|c|c|c|} \hline Firm & A & a & c \\ \hline Current eamings & $1.60 & $3.50 & $6.70 \\ \hline Curremt dividend & $1.20 & $3.50 & $7.20 \\ \hline \begin{tabular}{l} Expected annual preath rate in \\ dividends and earnings \end{tabular} & 6% & 1% & 1% \\ \hline Currenk market price & $19 & 5 36 & \\ \hline \end{tabular} 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: 5 Seck b: 1 stock C. 5 D. If the investor does buy stock A, what is the implied percentage return? Heund rour answer to two decimal places. c. If the appropriale B/E ratio is 13, what is the masinum price the invester should pay for each stock? Round your snswers to the nearest cent. Steck At 3 stock bis 5 Stock Cit 1 Suck Ais Stack B: 1 stock C: 5