You know the following concerning a common stock: EPS = $3.00 Payout ratio = 70% P/E = 10 Annual rate of growth of earnings and dividends = 5% If you want to earn 10 percent, should you buy this stock? What is the maximum price you should be willing to pay for the stock? Multiple Choice The stock is underpriced and overvalued, therefore it must be purchased. Since the valuation of the stock is $44.1 and greater than the current market price of $30, it is underpriced and overvalued and must be sold. Since the valuation of the stock is $44.1 and greater than the current market price of $30, it is overpriced and undervalued and must be purchased. You would want to buy high and sell low. There is not enough information to solve this