Stocks A and B have a dividend of $3. Stock As dividends are expected to grow at 3% forever. Dividends for Stock Dividends for Stock
Stocks A and B have a dividend of $3. Stock As dividends are expected to grow at 3% forever. Dividends for Stock Dividends for Stock B are expected to remain at $3 forever. All else equal, which stock should have a higher price?
1.A
2. B
3. A=B Not sure
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Authors: Howells, Keith Bain
3rd Edition
0273693395, 978-0273693390
