Phillip and Greg are each considering buying stock in Presidio Financial, Philip and Greg both...
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Phillip and Greg are each considering buying stock in Presidio Financial, Philip and Greg both believe that next year's dividend will be $1.25 per share. They also both agree that the growth rate of dividends will be 5% per year. However, Phillip believes that the required return for the investment is 18% while Greg believes that it is 11%. What Phillip and Greg's the relative valuations of Presidio? They both have the same valuation Greg has a lower valuation since he has a lower required retum Phillip has a lower valuation since he has a higher required return
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