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You are a financial analyst at Cairo Equity, and your boss wants your advice on the potential stock purchase of Universal Tires - a company,

You are a financial analyst at Cairo Equity, and your boss wants your advice on the potential stock purchase of Universal Tires - a company, which comes with an exceptional offer of paying a constant dividend of $120 per year. While the Egyptian economy is in Boom, inflation is 9%, and the banks are offering an average real interest rate of 2.5%. Would you be in favor of this purchase? If 'Yes', what price would you suggest at maximum to be paid for the stocks? Explain your answer

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