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Two stocks each currently pay a dividend of $2.20 per share. It is anticipated that both firms dividends will grow annually at the rate of

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Two stocks each currently pay a dividend of $2.20 per share. It is anticipated that both firms dividends will grow annually at the rate of 6 percent. Firma has a beta coefficient of 1.06 while the beta coefficient of firm Bis 0.7. 2. If U.S. Treasury bills currently yield 4 percent and you expect the market to increase at an annual rate of 8.8 percent, what are the valuations of these two stocks using the dividend-growth model Do not round intermediate calculations, Round your answers to two decimal places Stock A: $ Stock B: $ b. Why are your valuations different? volatile The beta coefficient of Sexet is higher, which indicates the stock's return is-Sect c. If stock A's price were $51 and stock B's price were $54, what would you do? Stock Ais Seine and be purchased Stock Bis and Select be purchased

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