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.

---

Definitions:

Psychological Capital

A person's favorable mental condition, defined by confidence in one's own abilities, a positive outlook, aspirations for the future, and the capacity to recover from difficulties.

Large Bank

A financial institution that possesses significant assets, offers a wide array of services, and operates on a large scale, often internationally.

Well-Being

The state of being comfortable, healthy, or happy; an assessment of an individual's general health, happiness, and life satisfaction.

Leadership Position

A role that entails guiding, directing, or influencing others towards achieving organizational goals or objectives.