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givin in the first pic Given the following data for LUNA Co. and CIF Co., please answer questions 1 and 2 below: LUNA Co. CIF
givin in the first pic
Given the following data for LUNA Co. and CIF Co., please answer questions 1 and 2 below: LUNA Co. CIF Co. $2.0 $4.50 25% 75% Dividends per share (DPS) Dividend payout ratio Market risk premium Stock price using DDM model Number of shares outstanding 11% 11% $110 $78 1,200,000 1,850,000 Total equity 150,000,000 88,000,000 Beta 1.12 1.55 1. The dividend growth rates for LUNA Co. and CIF Co. respectively, are equal t OA) 4.8%; 3.1% B) 1.6%; 9.4% O C) 6.7%;9.1% D) 6.6%; 9.4% 1. The dividend growth rates for LUNA Co. and CIF Co. respectively, are equal to: OA) 4.8%; 3.1% O B) 1.6%; 9.4% O C) 6.7%; 9.1% O D) 6.6%; 9.4% O E) None of the above. 2. The market capitalization rate (n) of CIF Co. exceeds that of LUNA Co. by: * O A) 9.4% B) 6.6% C) 2.40% D) 2.8% E) None of the aboveStep by Step Solution
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