ABC company LMP Company $3.5 $2 65% 52% 9% 9% Dividends per share (DPS) at...

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ABC company LMP Company $3.5 $2 65% 52% 9% 9% Dividends per share (DPS) at t=0 Dividend payout ratio Market risk premium Stock price using DDM model Number of shares outstanding Total equity Beta $42 $55 1 million 0.8 million $12.53 million $14.52 million 1.2 1.4 1. The dividend growth rates for LMP and ABC respectively, are equal to: * 8 points a. 19.28%; 15.96% O b. 15.96%; 19.28% O c. 17.80%; 8.59% O d. 8.59%; 17.80% e. None of the above 2. The market capitalization rate of LMP exceeds that of ABC by: * 7 points a. 11.27% O b. 11.53% O c. 12.56% d. 12.85% e. None of the above

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