e test lasts $120$ minutes.

$3$ pts

Question $15$

Each of two stocks, A and $B,$ are expected to pay a dividend of $$5$ in the upcoming year. The expected growth rate of dividends is $10\%$ for both stocks. You require a rate of return of $11\%$ on stock A and a return of $20\%$ on stock B$.$ The intrinsic value of stock A:

None of the options are correct.

will be greater than the intrinsic value of stock $B.$

will be the same as the intrinsic value of stock $B.$

will be less than the intrinsic value of stock $B.$

cannot be calculated without knowing the market rate of return.

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