Question 10 (3 points) Mary and Matt are considering the purchase of Allied Company stock. They both believe that Allied is likely to earn $3.60 per share next year and pay out $2.30 per share in dividends. Further, they have each estimated that dividends will grow for the foreseeable future at 9.5% per year and have determined that the appropriate required rate of return for this stock is 13%. They differ in one respect however. Mary is planning to own the stock for only 3 years, while Matt expects to own the stock for 10 years. Which of the following statements should be true regarding their attempts at valuing Allied stock? Either one could estimate the higher value, depending on their relative investment alternatives Mary should estimate a value that is higher than Matt Matt should estimate a value that is higher than Mary They should both estimate the same value for the stock