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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

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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 is CORRECT? a. These two stocks must have the same dividend yield. b. These two stocks must have the same expected capital gains yield. c. These two stocks must have the same expected year-end dividend. d. These two stocks should have the same expected return. e. These two stocks should have the same price. As the winner of a contest, you are now CFO for the day for Maguire Inc. and your day's job involves raising capital for expansion. Maguire's common stock currently sells for $45.oo per share, the company expects to earn $2.75 per share during the current year, its expected payout ratio is 70%, and its expected constant growth rate is 6.00%. New stock can be sold to the public at the current price, but a flotation cost of 8% would be incurred. By how much would the cost of new stock exceed the cost of common from reinvested earnings? a. 0.84% b. 0.37% c. 0.56% d. 0.09% e. 0.19%

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