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Hitio. Q45. Stocks A and B have the follow risk-free rate is 6.496 Which of the following statement ve the following data. The market risk

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Hitio. Q45. Stocks A and B have the follow risk-free rate is 6.496 Which of the following statement ve the following data. The market risk premium is 6.0% and the e following statements is CORRECT? Beta Constant growth rate 1.10 7.0%6 0.90 7.0 % a. Stock B's dividend yield equals its expected dividend growth rate. b. Stock A must have a higher dividend yield than Stock B. c. Stock B must have the higher required return. d. Stock B could have the higher expected return. e. Stock A must have a higher stock price than Stock B. Q46. A publicly listed company is not paying a dividend for the next 3 years but plans to pay a $i dividend per share starting with year 4. The risk free rate is 3% the market premium is 7%. The beta for this company equals the beta of the market. The price per share today according to the dividend discount model is closest to which of the following values? A. 11.1 B. 13.2% C. 6.8% D. 7.2%

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