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Which of two investors be willing to pay more for stock

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Reference no: EM132957041

Problem 1: Two investors are evaluating the stock of Beverly Enterprises for possible purchase. They agree on the stock's risk and on expectations about future dividends. However, one investor plans to hold the stock for five years, while the other plans to hold the stock for 20 years. Which of the two investors would be willing to pay more for the stock? Explain your answer.

Reference no: EM132957041

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