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Last year's dividend paid by Acme Mannequins, Inc. (AMI) was $2.33. The dividends are not expected to change for the foreseeable future. Elka requires a
Last year's dividend paid by Acme Mannequins, Inc. (AMI) was $2.33. The dividends are not expected to change for the foreseeable future. Elka requires a rate of return of 12%, where Kirsty requires a rate of return of 10%. Which of the following statements is true about the two investors? Select one: O a. Elka is willing to pay $3.88 more for the stock than Kirsty O b. Elka is willing to pay $116.50 more for the stock than Kirsty O c. Kirsty is willing to pay $116.50 more for the stock than Elka Od. Considering the dividend is fixed at $2.33, both investors will value to the stock equally O e. Kirsty is willing to pay $3.88 more for the stock than Elka
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