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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 9% 11%
Market Price $25 $25
Expected Dividend Growth 7% 9%

These two stocks must have the same expected capital gains yield

These two stocks should have the same expected return

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

These two stocks must have the same dividend yield

These two stocks should have the same price two years from now

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