2. Consider the following stocks: Stock A is expected to pay a dividend of...
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Accounting
2. Consider the following stocks: Stock A is expected to pay a dividend of 4 forever; Stock B is expected to pay a dividend of 2 next year, 2.50 in year 2, with dividend growth expected to be 3% per annum thereafter. If the required return on similar equities is 9%, calculate the price of each stock
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