Consider the following stocks, all of which will pay a liquidating dividend in a year and nothing

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Consider the following stocks, all of which will pay a liquidating dividend in a year and nothing in the interim:image text in transcribed

a. Calculate the expected return of each stock.

b. What is the sign of correlation between the expected return and market capitalization of the stocks?Appendix

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Corporate Finance

ISBN: 9780137845071

6th Edition

Authors: Jonathan Berk, Peter DeMarzo

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