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Growth Opportunities and Dividends Firm A has an ROE of 9% and Firm B has an ROE of 12%. Both stocks have a required return
Growth Opportunities and Dividends Firm A has an ROE of 9% and Firm B has an ROE of 12%. Both stocks have a required return of 9%. Ignoring risk and taxes the optimal dividend payout for Firm A is and the optimal dividend payout for Firm B is
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