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You have gathered the following information on Stocks A & B. Assuming the stock market is efficient, and the stocks are in equilibrium, which of

You have gathered the following information on Stocks A & B. Assuming the stock market is efficient, and the stocks are in equilibrium, which of the following is correct?

STOCK A B
Required Return 10% 12%
Market Price $25 $40
Expected Dividend Growth 7% 9%

These two stocks must have the same expected year-end dividend

These two stocks should have the same price

These two stocks should have the same expected return

These two stocks must have the same expected capital gains yield

These two stocks must have the same dividend yield

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