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Both share A and B are expected to pay a dividend of R3 in the upcoming year. The expected growth rate of both shares is
Both share A and B are expected to pay a dividend of R3 in the upcoming year. The expected growth rate of both shares is 9%. The required rate of return for share A and share B is 10% and 13%, respectively. The intrinsic value of share A_____.
A.Will be greater than the intrinsic value of share B.
B.Will be the same as the intrinsic value of share B.
C.Will be less than the intrinsic value of share B.
D.Cannot be calculated without knowing the market rate of return.
E.None of the above
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