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What is the difference in the return of the two stocks

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Reference no: EM131869160

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?

Reference no: EM131869160

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