You know the following concerning a common stock: EPS$3.00 Payout ratio25% P/E10 Annual ROR6% of earnings and div 1) If you want to earn 10%

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You know the following concerning a common stock:

EPS$3.00

Payout ratio25%

P/E10

Annual ROR6%

of earnings and div

1) If you want to earn 10% percent, should you buy this stock?

2) What is the maximum price you should be willing to pay for the stock?