Stocks a and B Have the Following Data A) These Two Stocks Must Have the Same Dividend Yield

question 81

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? $$\begin{array} { l c c } & \mathrm { A } & \mathrm { B } \\\text { Required return } & 10 \% & 12 \% \\\text { Market price } & \$ 25 & \$ 40 \\\text { Expected growth } & 7 \% & 9 \%\end{array}$$

• A) These two stocks must have the same dividend yield.
• B) These two stocks should have the same expected return.
• C) These two stocks must have the same expected capital gains yield.
• D) These two stocks must have the same expected year-end dividend.
• E) These two stocks should have the same price.

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Definitions:

Lymphocyte

A type of white blood cell that plays a significant role in the immune response by recognizing and fighting infection and disease.

White Blood Cell

Cells of the immune system involved in defending the body against both infectious disease and foreign materials.

Differential White Blood Cell Count

A test that measures the percentages of different types of white blood cells in the blood, used to diagnose and monitor diseases.

Lymphocytes

A type of white blood cell integral to the immune system, with roles in adaptive immunity, including B cells and T cells.