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20. Each of two stocks, A and B, is expected to pay a dividend of $7 in the upcoming year. The expected growth rate of
20. Each of two stocks, A and B, is expected to pay a dividend of $7 in the upcoming year. The expected growth rate of dividends is 6% for both stocks. You require a return of 10% on stock A and a return of 12% on stock B. Using the constant- growth Dividend discount model, the intrinsic value of stock A------- [15) (2 Points) The answer cannot be determined from the information given. will be the same as the intrinsic value of stock B will be higher than the intrinsic value of stock B will be less than the intrinsic value of stock B
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