Stocks a and b have the following data assuming the stock, Ask an Expert

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Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is correct?

A. B.

Required return. 10%. 12%

Market price. $25. $40

Expected growth. 7%. 9%

A. These two stocks should have the same price

B. these two stocks must have the same dividend yield

C. these two stocks should have the same expected return

D. these two stocks must have the same expected capital gains yield

E. these two stocks must have the same expected year end dividend

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91614556

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