Stocks a and B Have the Following Data

question 8

Multiple Choice

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) The two stocks should have the same expected dividend.
• B) The two stocks could not be in equilibrium with the numbers given in the question.
• C) A's expected dividend is $0.50.
• D) B's expected dividend is $0.75.
• E) A's expected dividend is $0.75 and B's expected dividend is $1.20.

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Definitions:

Legally Accountable

Being responsible or answerable in law; legally obligated to face the consequences of one's actions or decisions.

Concentration

Term applied to designated groups whose numbers in a particular occupation or level are high relative to their numbers in the labour market

Protected Class

Groups of people legally protected from discrimination and harassment, based on characteristics such as age, race, gender, religion, and disability.

Labour Market

The supply and demand for labor, where employees provide the supply and employers create the demand.