Considerthefollowingtwostocks: a. Stock A is expected to provide a dividend of $10 a share...
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Accounting
- Considerthefollowingtwostocks:
a. Stock A is expected to provide a dividend of $10 a share forever.
b. Stock B is expected to pay a dividend of $5 next year. Thereafter, dividend growth is expected to be 4% a year forever.
If the market capitalization rate for each stock is 10%, which stock is more valuable?
- Considerthefollowingtwostocks:
a. Stock A is expected to provide a dividend of $10 a share forever.
b. Stock B is expected to pay a dividend of $5 next year. Thereafter, dividend growth is expected to be 4% a year forever.
If the market capitalization rate for each stock is 10%, which stock is more valuable?
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