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Consider the following stocks: Stock Gamma is expected to pay an annual dividend of $5 forever. Stock Zeta is expected to pay a dividend of
Consider the following stocks: Stock Gamma is expected to pay an annual dividend of $5 forever. Stock Zeta is expected to pay a dividend of $4 next year with dividend growth expected to be 10% per annum for the first three years before settling down to 4% a year thereafter. If the required return on similar equities is 9%, calculate the price of each stock
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