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Question 2: Use the constant dividend growth model to suggest which of the following three stocks you should invest in (you may choose as many
Question 2: Use the constant dividend growth model to suggest which of the following three stocks you should invest in (you may choose as many as you want). Explain your answer. Firm X Firm Y Firm z Dividend per Share (dl) Current Share Price R Return on Equity Reinvestment in Firm / Plow back (b) $1 $100 10% 10% 95% $10 $180 10% $15 $200 10% 15% 25% 10% 50%
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