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Stocks A and B have the same required return and the same price, $25. Stock A's dividend is expected to grow at a constant rate

Stocks A and B have the same required return and the same price, $25. Stock A's dividend is expected to grow at a constant rate of 10% per year, while Stock B's dividend is expected to grow at a constant rate of 5% per year. Which of the following statements is correct?

a. Stock A's expected dividend at t = 1 is only half that of Stock B.

b. Since Stock A's growth rate is twice that of Stock B, Stock A's future dividends will always be twice as high as Stock B's.

c. Stock A has a higher dividend yield than Stock B.

d. Currently, the two stocks have the same price, but over time Stock B's price passes that of Stock A.

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