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* in USD . You have the following information about two common stocks: Stock A Stock B 400 100 2,575 8,450 10% Current cash dividend
* in USD
. You have the following information about two common stocks: Stock A Stock B 400 100 2,575 8,450 10% Current cash dividend Current price Expected for 3 years: Growth rate Required return Expected thereafter: Growth rate Required return 18% 20% 14% 10% 12% 16% 14% a. For each stock, calculate its expected cash dividend in year 4, and its expected future value at the end of 3 years, b. its present value per share Based on your calculations, are the current prices attractive? Explain. CStep by Step Solution
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