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The following is the information related to two stocks A and B. Please give your decision whether to invest in them or not if your
The following is the information related to two stocks A and B. Please give your decision whether to invest in them or not if your required rate of return (cost of equity of the firm) is 15%. (Use Gordon's Model)
Stock | EPS today | Dividend Payout | ROE | MPS |
A | 50 | 50% | 10% | 280 |
B | 30 | 50% | 20% | 280 |
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