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Stocks A and B haver 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 dividened yield

c. These two stocks should have the same expected return.

?d. these two stocks must have the same expected capital gains yeild.

?e. These two stocks must have the same expected year end dividend.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92066904

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