Question: Using the dividend valuation method, an analyst determines the value of Company A's stock to be $10 and the value of Company B's stock to
Using the dividend valuation method, an analyst determines the value of Company A's stock to be $10 and the value of Company B's stock to be $14. Based on this information, which of the following statements is most accurate? Firm is c O A. Other things being equal, il Company A and Company B have the same firm value, Company B must llow have more debt, thus leveraging its returns for the benefit of shareholders. OB. Company B's required rate of return is higher than Company A's required return OC. Other things being equal, il Company A and Company have the same firm value, Company A may have more shares of stock outstanding than Company B. a firm OD. Company B must be riskier than Company A, and risk requires a reward. this follow mation is Le. Consit Click to select your answer He has 2 00 132 PM 1/10/2021 pits F home E11 end 12 delete 6 7 8 9 backspace Y U [ . J K 2 L enter
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