Stocks a and B Have the Following Data A) the Two Stocks Should Have the Same Expected Dividend

question 82

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? $\begin{array}{lrr}& \underline{\text { A }} &\underline{\text {B}}\\ \text { Price } & \$ 25 & \$ 40 \\\text { Expected growth } & 7 \% & 9 \% \\\text { Expected return } & 10 \% & 12 \%\end{array}$

• 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:

Universal Recipient

A term commonly used to describe individuals with AB positive blood type, who can receive red blood cells from any other blood type.

Blood Type

A classification of blood based on the presence or absence of inherited antigenic substances on the surface of red blood cells, significant for blood transfusions.

Erythrocytes Agglutinate

The clumping together of red blood cells, often as a reaction to certain antibodies or incompatibilities.

Transfused

The process of transferring blood or blood-based products from one person into the circulatory system of another.