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You are considering an investment in software company. The beta of software companies is 1.5. The annual risk-free rate is 2% and the annual market

You are considering an investment in software company. The beta of software companies is 1.5. The annual risk-free rate is 2% and the annual market premium is 8%. The expected annual profit from the software subscription is $100,000 and it is expected to grow at the rate of 6% per year. What is the maximum price you are willing to pay for the company?

A. $1,123,221.12

B. $908,153.55

C. $1,370,925.78

D. $1,250,000.00

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