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You have the following information on Yahoo company's stocks (20 points) Growth first two years 24% Growth years thereafter 6% Beta Risk free rate 7%

You have the following information on Yahoo company's stocks (20 points) Growth first two years 24% Growth years thereafter 6% Beta Risk free rate 7% Expected market return 12% Earnings per share $8 Dividends now $3 Calculate P/E ratio using the information given above If the market price is $42, would you recommend investing in this stock

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