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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
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 Price $25 $40Expected growth 7% 9%Expected return 10% 12% A) The two stocks should have the same expected dividend B) The two stocks could not be in equilibrium with the numbers given in the question C) A's expected dividend is $0.50 D) B's expected dividend is $0.75 E) A's expected dividend is $0.75 and B's expected dividend is $1.20
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