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.

Required return. 10%. 12%

Market price. $25. $40

Expected growth. 7%. 9%

A. These two stocks should have the same price

B these two stocks must have the same dividend yield

C these two stocks should have the same expected return

D these two stocks must have the same expected capital gains yield

E these two stocks must have the same expected year end dividend