What is the maximum price you should be willing to pay

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Reference no: EM132466001

You know the following concerning a common stock:

EPS $3.00

Payout ratio 25%

P/E 10

Annual ROR 6%

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?

Reference no: EM132466001

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