Question: what the correct answer is b. Comment briefly on the comparative values of these three companies. What is the major cause of the differences among

what the correct answer is

what the correct answer is b. Comment briefly on
b. Comment briefly on the comparative values of these three companies. What is the major cause of the differences among these three valuations? (Select the best choice below.) @ A. The value of Buggies-Are-Us is $17.36, compared to $40.40 for Steady Freddie, Inc., and $59.07 for Gang Busters Group. The difference in values is caused by the difference in dividend growth rates. The Buggies-Are-Us dividends do not grow, resulting in the lowest value. The dividends of Steady Freddie, Inc., grow at a constant rate of 6% forever; whereas Gang Busters Group's dividends grow at approximately 15% for the first four years and 6% from year five to the foreseeable future. The higher growth in dividends in the earlier years causes the stock of Gang Busters Group to be worth more than the Steady Freddie, Inc., stock. ) B. The value of Buggies-Are-Us is $17.36, compared to $40.40 for Steady Freddie, Inc., and $59.07 for Gang Busters Group. The difference in values is caused by the difference in dividend growth rates. The Buggies-Are-Us dividends do not grow, resulting in the lowest value. The dividends of Steady Freddie, Inc., grow at a constant rate of 6% forever, whereas Gang Busters Group's dividends grow at approximately 15% for the first four years and 11% from year five to the foreseeable future. The higher growth in dividends in the earlier years causes the stock of Gang Busters Group to be worth more than Steady Freddie, Inc., stock

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