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Here are data on two stocks, both of which have discount rates of 10%: Return on Equity Stock A: 10% Stock B: 8% Earnings per
Here are data on two stocks, both of which have discount rates of 10%:
Return on Equity Stock A: 10% Stock B: 8%
Earnings per share Stock A: $2.50 Stock B: $1.50
Dividends per share Stock A: $1.00 Stock B: $1.00
What is the proper stock price for each firm? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Stock Price: Stock A: ??
Stock Price: Stock B: ???
(26.50/14.00 are incorrect and 10.00/10.00 are incorrect)
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