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Stock pricing: constant dividend, constant dividend growth, ROE, plowback, payout A and B have the same discount rate of 10% for their stocks. Which of

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Stock pricing: constant dividend, constant dividend growth, ROE, plowback, payout A and B have the same discount rate of 10% for their stocks. Which of the following statement must be true? (A) (B) (C) (D) 1. A and B's stocks must have the same price. They may have different levels of risk. They must have the same beta (value). We can determine their stock price if we further know their dividends in year Bond's price sensitivity and to interest rate fluctuations 2 @ W 13

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