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Two investors are considering purchasing Apple's stock. They agree on the expected future dividends and the expected future growth rate. Further they are on agreement
Two investors are considering purchasing Apple's stock. They agree on the expected future dividends and the expected future growth rate. Further they are on agreement on the riskiness of the stock and the associated required rate of return. However Gigi plans to hold the stock only one year while Kendall plans to hold the stock 10 years. On the basis of the type of analysis done in this chapter which investor would be willing to pay the most for the stock?
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