M&M Corporation just paid a dividend of $1.55. It is expected to increase its dividend by 2% per year. B&B Corporation is expected to pay a $2.55 dividend in one year. It is expected to grow at 4% per...

M&M Corporation just paid a dividend of $1.55. It is expected to increase its dividend by 2% per year.

B&B Corporation is expected to pay a $2.55 dividend in one year. It is expected to grow at 4% per year.

The market requires a return of 12% on assets at similar risk level.,