Question
Stock A has a beta of 1.1 and Stock B has a beta of 0.9. The market risk premium is 6%, and the risk-free rate
Stock A must have a higher dividend yield than Stock B. | ||
Stock A must have a higher stock price than Stock B. | ||
Stock B's dividend yield equals its expected dividend growth rate. | ||
Stock B must have the higher required return. | ||
Stock B could have the higher expected return. |
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Introduction to Corporate Finance What Companies Do
Authors: John Graham, Scott Smart
3rd edition
9781111532611, 1111222282, 1111532613, 978-1111222284
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