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Basil owns one share of stock of Lucky Hare and one share of stock of Glacial Tortoise. The total value of his holdings is $
Basil owns one share of stock of Lucky Hare and one share of stock of Glacial Tortoise. The total value of his holdings is $ Both stocks pay annual dividends that are expected to continue forever. The expected return on Lucky Hare stock is percent and its annual dividend is expected to remain at $ forever. The expected return on Glacial Tortoise stock is percent. The next dividend paid by Glacial Tortoise is expected to be $ and all subsequent dividends are expected to grow at a constant rate. What growth rate is expected for Glacial Tortoise dividends? The next dividend for both firms'stocks will be paid in one year.
Aplus or minus bps
Bplus or minus bps
Cplus or minus bps
Dplus or minus bps
the answer cannot be obtained based on the given information
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