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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

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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 $3 in the upcoming year while stock Y is expected to pay a dividend of $4 in the upcoming year. The expected growth rate of dividends for both stocks is 7%. Using the constant growth DDM, the intrinsic value of stock X will be less than the intrinsic value of stock Y will be the same as the intrinsic value of stock Y will be greater than the intrinsic value of stock Y will be the same or greater than the intrinsic value of stock Y

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