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Which will be eager to pay higher price for the company

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Reference no: EM132929933

Problem 1: XYZ company has an infinite horizon with a constant dividend of RM25. Your uncle Chog and his wife are willing to invest their money in purchasing the shares of this company. While your uncle wants an annual return of 10% on his investment, his wife is expecting an annual return of 8% on her money. Which one of them will be eager to pay higher price for this company's share? Argue the answer.

Reference no: EM132929933

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