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You would like to buy two stocks. Both stocks have a required retum of 10%. Stock A will pay forever a constant semiannual dividend of
You would like to buy two stocks. Both stocks have a required retum of 10%. Stock A will pay forever a constant semiannual dividend of $ 2 whilo stock has an expected dividend of $ 1.5 and the will be growing with a fixed rate of 1- Compute the current values of the stocks A and B (2 Marks) 2. Explain briefly, with your own words, the difference between these two types of stocks (2 Marks) 3- you will decide to postpone your purchase to year 4, how much you will be willing to pay for the stock A and stock B ca Marka) For the toolbar, press ALT-F10P) or ALTINF10 (Mac) BIVS Paragraph Arial 10pt @ O WORDS POWERED BY TINY
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