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Please respond to both pictures asap. I will THUMBS UP within the hour.

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Sources, Inc. is a succesul debution company. The companys class A common stock has paid a dividend of 57 per share per year

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Which asset would the risk - averse financial manager prefer? (See below.) Asset A B С D Initial investment $15,000 $15,000 $
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Answer #1

Q1:

Value of stock when sam purchased = dividend/required rate at that time

=7/.14= 50$ ---perpetuity formula

Q2:

option C : Asset C

---it has highest expected return and lowest standard deviation

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