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Stocks A and B have the following data. Assuming the stock market is in equilibrium, which of the following statements is correct? A B Required
Stocks A and B have the following data. Assuming the stock market is in equilibrium, which of the following statements is correct?
| A | B |
Required Return | 10% | 12% |
Market Price | $25 | $40 |
Expected Growth | 7% | 9% |
These two stocks should have the same prices. |
These two stocks should have the same dividend yields. |
These two stocks should have equal expected returns. |
These two stocks should have the same expected capital gains yields. |
These two stocks should have the same expected year-end dividends. |
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