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Question 2 (4 points) e Consider the following three stocks: Stock A is expected to provide a dividend of $15 a share forever. Stock B
Question 2 (4 points) e Consider the following three stocks: Stock A is expected to provide a dividend of $15 a share forever. Stock B is expected to pay a dividend of $5 next year. Thereafter, dividend growth is expected to be 3% a year forever. Stock C is expected to pay a dividend of $5 next year. After the dividend its stock is expected to sell at $250. If the market capitalization rate for each stock is 5%, which stock is the most valuable
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