Two Constant Growth Stocks Are in Equilibrium,have the Same Price,and

question 2

Multiple Choice

Two constant growth stocks are in equilibrium,have the same price,and have the same required rate of return.Which of the following statements is CORRECT?

• A) The two stocks must have the same dividend per share.
• B) If one stock has a higher dividend yield,then it must also have a lower dividend growth rate.
• C) If one stock has a higher dividend yield,then it must also have a higher dividend growth rate.
• D) The two stocks must have the same dividend growth rate.
• E) The two stocks must have the same dividend yield.

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Definitions:

Lower Self-Esteem

Refers to a lower regard for one’s own worth or value.

Frustration-Aggression Hypothesis

A theory suggesting that aggression is often the result of frustration caused by blocked goals.

Aggression

Behaviors or actions intended to harm or intimidate others, driven by anger or hostility.

Frustration

A negative emotional state resulting from a blocked goal or desire, often leading to negative outcomes like aggression or giving up.