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Order these stocks from lowest to highest per-share: Stock A: Just paid a $1 dividend...

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Finance

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Order these stocks from lowest to highest per-share: Stock A: Just paid a $1 dividend and is expected to pay $1/share forever with no growth. The CAPM model for Stock A gives a required return of 10% Stock B: Just paid a $1 dividend and is expected to grow forever at 4% per year. The CAPM for Stock B gives a required return of 13.62% Stock C: Just paid a $i dividend and is expected to shrink at 3% per year forever. The CAPM for C gives a discount rate of 5.8% Stock D: Your finance professor just tells you that Stock D is worth $12 per share (because you have to have a minimum of 4 answers for these questions) - Stock A - - - Stock B Stock Stock D

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