Concerning common stock-investor expected rate of return

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You know the following concerning a common stock: •EPS: $3.00 •Payout ratio: 25% •P/E: 10 •Annual rate of growth of: 6% earnings and dividends •Investor's expected rate of return: 10% Should you buy this stock? Select one: a. Yes, because it's slightly undervalued. b. No, because it is valued slightly above the current market price. c. No, because it is considerably overvalued. d. Yes, because it has positive earnings

Reference no: EM131338648

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