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You own store A and store B. The next cash flow for each store is expected in 1 year. Store A has a coat of
You own store A and store B. The next cash flow for each store is expected in 1 year. Store A has a coat of capital of 7.23 percent and is expected to produce annual cash flows of forever. Store B is worth exist172,000 and is expected to produce annual cash flows of forever. Which assertion is true? A. Store A is more valuable than store B and store A is more risky than store B B. Store A is more valuable than store B and store B is more risky than store A C. Store B is more valuable than store A and store A is more risky than store B D. Store B is more valuable than store A and store B is more risky than store A E. Store A and store B either have the same value, the same level of risk, or both the same value and level of risk
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