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There are five investors in the stock market. The following table shows their names and the rates of return each require from this stock as
There are five investors in the stock market. The following table shows their names and the rates of return each require from this stock as well as the growth rate each expects for future dividends. Currently the stock is selling for Po = $65 is paying a dividend of DO = $5. They already own some shares of this corporation. Individual Required Rate of Expected Growth Rate Return of Dividends 0.10 0.02 Adam Becky 0.12 0.04 Cara 0.14 0.06 0.16 0.08 Darcey Emma 0.18 0.10 Which one of these investors do you think is more likely to buy the stock, sell the stock, or take no action? An investor would not take any action if the investor is indifferent about buying or selling this bond (s/he will neither buy or sell the stock). Adam [Choose] Sell Buy Do Nothing TEMUUSE Becky Cara [Choose ] Darcey [Choose] Emma [ Choose ]
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