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You wish to earn a return of 13% on each of two stocks, X and Y. Stock X is expected to pay a dividend of
You wish to earn a return of 13% on each of two stocks, X and Y. Stock X is expected to pay a dividend of R3 in the upcoming year while Stock Y is expected to pay a dividend of R4 in the upcoming year. The expected growth rate of dividends for both stocks is 7%. The intrinsic value of stock X ______. 1. cannot be calculated without knowing the market rate of return 2. will be greater than the intrinsic value of stock Y 3. will be the same as the intrinsic value of stock Y 4. will be less than the intrinsic value of stock Y
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