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Danny owns one share of stock of Lucky Hare and one share of stock of Glacial Tortoise. The total value of his holdings is $
Danny 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 for Lucky Hare stock is percent and its annual dividend is expected to remain at $ forever. What is the expected return for Glacial Tortoise stock if its next dividend is expected to be $ and all subsequent dividends are expected to grow by percent annually? The next dividend for both firms stocks will be paid in one year.
plus or minus bps
plus or minus bps
plus or minus bps
plus or minus bps
the answer cannot be obtained based on the given information
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