Based on your knowledge of stock valuation

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Investors in Company A’s stock, currently selling for $26.25, were paid a dividend of $2.00 last year and are expected to receive a dividend of $2.10 this year. Company B’s stock on the other hand sells for $67.00, paid a dividend of $3.00 last year and is expected to pay a dividend of $3.24 at the end of this year. Your friend Joan is trying to decide which stock to invest in, she requires a 13% return on her investment. Based on your knowledge of stock valuation how would you advise Joan?

Reference no: EM131883792

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