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Here are data on two stocks, both of which have discount rates of 14%: Stock A Stock B Return on equity 14 % 10 %
Here are data on two stocks, both of which have discount rates of 14%: |
Stock A | Stock B | ||||||||||||
Return on equity | 14 | % | 10 | % | |||||||||
Earnings per share | $ | 1.50 | $ | 1.40 | |||||||||
Dividends per share | $ | 1.20 | $ | 1.20 | |||||||||
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