dividend yield- why is this correct?

eview Fall 2020 - Answers (1).docx - Word Search but References Mailings Review View Help Nitro Pro EEEE 21 A AaBbCcDc AaBbCD AaBbCcDc AaBb C AaBbccc Normal 1 No Spac... Heading 1 Heading 2 Body Text Paragraph Styles 9. Stocks A and B have the following data. Assuming the stock market is efficient, the stocks are expected to grow at a constant rate, and the stocks are in equilibrium, which of the following statements is CORRECT? A B Required return 10% 12% Market price $25 S40 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. D. Focus r