work (10 pts:5 ques) Problem 11-03 An investor with a required return of 16 percent for very risky investments in common stock has analyzed three firms and must decide which, if any, to purchase. The information is as follows: -1% Firm A B Current earnings $1.50 $2.80 $6.90 Current dividend $1.50 $4.00 $7.70 Expected annual growth rate in 8% 2% dividends and earnings Current market price $ 28 $ 33 $52 5. 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 Stock :5 Stock C: $ b. If the investor does buy stock A, what is the implied percentage return? Round your answer to two decimal places % c. If the appropriate P/E ratio is 21, what is the maximum price the investor should pay for each stock? Round your answers to the bearest cent. Stock AS Stock B: 5 Stock CS If the appropriate P/E ratio is , what is the momum price the investor should pay for each stock? Round your answers to the nearest cent Stock Ais Stock : 5 Stock cis