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1. Use the constant dividend growth model to calculate the intrinsic value of each of the following stocks: (a) Stock B pays a current dividend of $4.00 per share per year, with a constant dividend growth rate of 3%, and has a required return of 12%.

2. Why is it important for management to distinguish between current assets that are easily converted to cash and those that are more permanent? Eplain in paragragh form.

Financial Management, Finance

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