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Stock A has a capital gains yield of 6% and a dividend yield of 6%. Stock B has a capital gains yield of 8% and

Stock A has a capital gains yield of 6% and a dividend yield of 6%. Stock B has a capital gains yield of 8% and a dividend yield of 8%. Which stock has the higher required return?

a) A

b) B

c) They have the same required return.

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Question

Stock A has a capital gains yield of 6% and a dividend yield of 6%. Stock B has a capital gains yield of 8% and

Stock A has a capital gains yield of 6% and a dividend yield of 6%. Stock B has a capital gains yield of 8% and a dividend yield of 8%. Which stock has the higher required return? a) A b) B c) They have the same required return.

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Step: 1

Get Instant Access with AI-Powered Solutions

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Stock A has a capital gains yield of 6% and a dividend yield of 6%. Stock B has a capital gains yield of 8% and a dividend yield of 8%. Which stock has the higher required return?

a) A

b) B

c) They have the same required return.