You are considering purchasing a stock in a fast-growing company. In the recent financial statements,...
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You are considering purchasing a stock in a fast-growing company. In the recent financial statements, the firm reported EPS of $3.42. You expect earnings to grow at 15% annually for the next four years. After that you think earnings growth will slow to 4% per year into the future. If you require a return of 12% on this investment, what are you willing to pay for the stock?
Group of answer choices
A.$59.34
B.$71.25
C.$82.46
D.$60.91
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