You are considering purchasing a common stock that is currently selling for $114.64. Recently, the firm reported EPS of $4.63. You exp- EPS to grow at an annual rate of 3.75% into the future. Based on this assumption, estimate the return on the stock at the current price. 4.04% 7.94% 7.79% 8.74% 0422 Question 18 12 pts You are considering purchasing stock in a fast-growing company. In the recent financial statement, the firm reported that EPS is $2.46. You feel that earings will grow at 40% for the next two years. Then, it seems reasonable to assume that they will grow at 5% from then on. If you require a return of 20%, based on these assumptions, how much would you pay for a share today? 52966 525.75 59.92 51722 4200