Each of Two Stocks,A and B,are Expected to Pay a Dividend

question 116

Multiple Choice

Each of two stocks,A and B,are expected to pay a dividend of $5 in the upcoming year.The expected growth rate of dividends is 10% for both stocks.You require a rate of return of 11% on stock A and a return of 20% on stock B.The intrinsic value of stock A _____.

• A)will be greater 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 calculated without knowing the market rate of return
• E)none of the above is true.

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Definitions:

Vaginal Orifice

The external opening of the vagina, serving as the entrance to the reproductive tract in female anatomy.

Ovarian Follicle

is a fluid-filled sac in the ovary that contains a developing egg (oocyte), destined to release an egg during ovulation.

Primordial Follicle

The earliest form of an ovarian follicle, consisting of an immature egg surrounded by a single layer of cells, present from birth in females.