Will the price of mmb higher or lower than ppb

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Pa Pa Bear (PPB) Corporation is expected to pay dividends of $12, $9, $6 over the next three years. The company plans to maintain a constant 3% dividend growth rate afterwards. If the required return on PPB is 10%, what is the current price of PPB stock?

Another stock, Ma Ma Bear (MMB) with the same expected dividend payment is less riskier than PPB. Will the price of MMB higher or lower than PPB?

Reference no: EM132537822

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