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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? Price Expected growth Expected return S25 790 10% S40 9% 1290 a. The two stocks should have the same expected dividend. The two stocks could not be in equilibrium with the numbers given in the question. A's expected dividend is S0.50. B's expected dividend is S0.75. A's expected dividend is S0.75 and B's expected dividend is $1.20. O b. C. d. e
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