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These payoffs are expected to persist in perpetuity. The low-payout stocks have a total market value of $101.2 billion, the medium- payout stocks have
These payoffs are expected to persist in perpetuity. The low-payout stocks have a total market value of $101.2 billion, the medium- payout stocks have a value of $51.2 billion, and the high-payout stocks have a value of $121.2 billion. a. Who are the marginal investors that determine the prices of the stocks? b. Suppose that this marginal group of investors requires an after-tax return of 15%. What are the prices of the low-, medium-, and high- payout stocks? c. Calculate the after-tax returns of the three types of stock for each investor group. k d. What are the dollar amounts of the three types of stock held by each investor group? nces Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Suppose that this marginal group of investors requires an after-tax return of 15%. What are the prices of the low-, medium-, and high-payout stocks? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Price of low-payout stock Price of medium-payout stock Price of high-payout stock < Required A Required C >
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