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Which stock has the higher price? Show your work. [Use the constant growth model P =D/(r-g)] Market return = 8% T-bill rate = 4% Beta
Which stock has the higher price? Show your work. [Use the constant growth model P =D/(r-g)] Market return = 8% T-bill rate = 4% Beta EPS Growth Current EPS Payout Ratio Stock A 1.05 6.5% $1/share 45 % Stock B 1.10 7.0% $1/share 40 %
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