Problem $11-03$

An investor with a required return of $12$ percent for very risky investments in common stock has analyzed three firms and must decide which, if any, to purchase. The information is as follows:

$\backslash$table$[[$Firm$,$A$,$B$,$C$,],[$Current earnings,$$2\mathrm{.}20,$$$2\mathrm{.}90,$$$7\mathrm{.}30,],[$Current dividend,$$1\mathrm{.}20,$$$2\mathrm{.}40,$$$6\mathrm{.}40,],[$Expected annual growth rate in$,7\%,2\%,-1\%,],[$dividends and earnings,,,,$],[$Current market price,$$29,$$$,29,$$$56$