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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's expected dividend is $0.75. b. The two stocks should have the same expected dividend. c. A's expected dividend is $0.75 and B's expected dividend is $1.20. d. The two stocks could not be in equilibrium with the numbers given in the question. e. A's expected dividend is $0.50. B $40 9% 12% Price Expected growth Expected return
Please show all the steps in excel. Thank you.
A$257%10%B$409%12%Step by Step Solution
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