Stocks a and B Have the Following Data $\$ 0.50$

question 53

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 \( 1 \mathrm{~s} \$ 0.75 \) and \( B^{\prime} \mathrm{s} \) expected dividend \( 1 \mathrm{~s} \$ 1.20 \).

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