Question

An analyst is valuing 3 stocks: A, B, C. The analyst's assumptions are: A: D0 =...

An analyst is valuing 3 stocks: A, B, C. The analyst's assumptions are:

A: D0 = $2/share, k = .09, g = .03

B: D0 = $2.50/share, k = .10, g = .04

C: D0 = $2.75/share, k = .12, g = .02

If you list the stocks in order from lowest to highest by their V0, the correct order is

A C B

C A B

A B C

C B A

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