Question: Two companies ABC and BDA each have expected dividends per share with a constant growth rate for the foreseeable future.Why would ABC's stock have a

Two companies ABC and BDA each have expected dividends per share with a constant growth rate for the foreseeable future.Why would ABC's stock have a higher price today than BDA's stock?

  • A.ABC's dividend per share today is more than BDA's dividend per share today.
  • B.The growth rate for ABC's expected dividend per share is higher than the growth rate for BDA's expected dividend per share.
  • C.The market's required return on ABC's stock is higher than the market's required return on BDA's stock.
  • D.Both A and B.
  • E.All three, i.e., A, B and C.

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