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Company A currently pays an annual dividend of $1.46 a share and plans on increasing that amount by 2.75% annually. Company B currently pays an
Company A currently pays an annual dividend of $1.46 a share and plans on increasing that amount by 2.75% annually. Company B currently pays an annual dividend of $1.42 a share and plans on increasing its dividend by 3.10% annually. Assume that both stocks are valued using a constant dividend growth model. Given this information, you know for certain that the stock of Company B has a higher ______ than the stock of Company A.
A. Market price
B. Dividend yield
C. Capital gains yield
D. Total return
E. Real return
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