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Problem 3: (SS) Each of two stocks, A and B, are expected to pay a dividend of $7 in the upcoming year. The expected growth

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Problem 3: (SS) Each of two stocks, A and B, are expected to pay a dividend of $7 in the upcoming year. The expected growth rate of dividends is 6% per year indefinitely for both stocks. You require a return of 10% on stock A and a return of 12% on stock B. Using the constant growth model (Gordon Growth Model), compare the intrinsic values of stock A and B

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