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You wish to earn a return of 11 on each of two stocks, A and B. Stock ( A ) is expected to pary a
You wish to earn a return of \11 on each of two stocks, A and B. Stock \\( A \\) is expected to pary a dividend of \\( \\$ 3 \\) ho the upcomint year while stock B is expected to pay a dividend of \\( \\$ 2 \\) in the upcorring yean. The expected growth cates of dividends lo stocks \\( A \\) and \\( B \\) are \4 and \3, respectively, Using the constam growth DOM, the intrinsic value of stock. A Will be less than the intrinsic valuc of stack \\( B \\) Will be higher than the intrinsic value al stock B More information is necessary to Arswer this question Will be the same as the intrinsic value of stock \\( B \\)
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