14. (3') Two stocks, A and B, have the same market required rate of return...
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14. (3') Two stocks, A and B, have the same market required rate of return 10%. Each of the stocks is expected to pay a dividend of $4 in the upcoming year. The expected growth rate of dividends is 6% for stock A and 5% for stock B. Using the constant-growth DDM, the intrinsic value of stock A A. will be higher than the intrinsic value of stock B B. will be the same as the intrinsic value of stock B C. will be less than the intrinsic value of stock B D. cannot be compared with the intrinsic value of stock B
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