Question
Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which is the Stocks As
Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which is the Stocks As and Stocks Bs expected dividend at t=1?
|
| A | B |
| Price | $25 | $25 |
| Expected growth (constant) | 10% | 5% |
| Required return | 15% | 15% |
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Public Finance And Public Policy
Authors: Jonathan Gruber
6th Edition
1319105254, 9781319105259
