A Company’S 12-Month Trailing Earnings Per Share [Eps] Are $4.50

A company’s 12-month trailing earnings per share [EPS] are $4. 50,and the EPS are expected to grow 10% annually. If an investor is willing to paya 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.

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