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Stocks A and B have the following data. The market risk premium is 6.0% and the risk-free rate 6.4%. Assuming the stock market is efficient
Stocks A and B have the following data. The market risk premium is 6.0% and the risk-free rate 6.4%. Assuming the stock market is efficient and the stocks are in equilibrium, does stock A has higher dividend yield than Stock B? A B Beta 1.10 0.90 Constant growth rate 7.00% 7.00% Provide detailed explanation
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