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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 $40
Expected growth 7% 9%
Expected return 10% 12%
a. The two stocks could not be in equilibrium with the numbers given in the question.
b. A's expected dividend is $0.50.
c. The two stocks should have the same expected dividend.
d. A's expected dividend is $0.63 and B's expected dividend is $1.20.
e. B's expected dividend is $0.75.

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