1) Using the dividend valuation model, the value of company A's stock will be lower than the value of Company B's stock.
2) Other things being equal, if Company A and Company B have the same firm value, Company B must have more debt, thus leveraging its returns for the benefit of shareholders.
3) Other things being equal, if Company A and Company B have the same firm value, Company A may have more shares of stock outstanding than Company B.
4) Company B's required rate of return is higher than Company A's required return.
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