Babys Care Corporation has an infinite horizon with a constant dividend of $25. Your uncle Sam and
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Babys Care Corporation has an infinite horizon with a constant dividend of $25. Your uncle Sam and his wife are willing to invest their money in purchasing the shares of this corporation. 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 of them will be eager to pay a higher price for this companys share?
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