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You're considering two different stocks. One expects to pay a constantly growing dividend at the end of this year of $4 with growth of 3% and the other has a constant dividend of $5 that is expected to only continue 10 more years and then never pay another dividend. If the price of each is $40 today, what is the difference in the return of the two stocks?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92697512

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