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You are considering an investment in a technology company. The beta of technology companies is 1.8. The annual risk-free rate is 2% and the annual

You are considering an investment in a technology company. The beta of technology companies is 1.8. The annual risk-free rate is 2% and the annual market return is 10%. The expected annual profit from the software subscription is $200,000 and it is expected to grow at the rate of 7% per year. What is the maximum price you are willing to pay for the company?

A.

$2,127,659.57

B.

$2,370,925.78

C.

$1,008,153.55

D.

$2,250,000.00

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