Would this be an acceptable purchase price

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Reference no: EM13290918

A company's 12-month trailing earnings per share [EPS] are $4.50, and is expected to grow 10% annually. If an investor is willing to pay a P/E multiple that is no higher than 2.5 times its growth rate, and the stock is currently selling at $100 per share, would this be an acceptable purchase price? Explain and support your answer with numbers.

Reference no: EM13290918

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