What is reasonable price to pay for the security

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Reference no: EM131071717

A student investment club, The Millionaires Club, is considering purchase of a security for the club. The current earnings per share is $.75 and is expected to increase by $.05 each year into the future. If 30-year government bonds are paying 4.6%, what is a "reasonable" price to pay for the security? 

Reference no: EM131071717

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