Equity portfolios Suppose you buy 180 shares of Stock A and 100 shares of Stock B. Stock

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Equity portfolios Suppose you buy 180 shares of Stock A and 100 shares of Stock B. Stock A pays a constant dividend of $.20 and will do so forever. They have a required rate of return of 7.42 %. Stock B just paid a dividend of $.80.

They expect this dividend to grow at a rate of 6 % for the rest of time. They have a required return of 11 %. How much should you have to spend in total?

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