Stocks a and B Have the Following Data A) Stock a Has a Higher Dividend Yield Than Stock

question 34

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? $$\begin{array} { l c c } \text { } & \underline{ \mathrm { A } } & \underline{ \mathrm { B } } \\\text { Price } & \$ 25 & \$ 25\\\text { Ejgidected growth (canstant) } & 10 \% & 5 \% \\\text { Required return } & 15 \% & 15 \%\end{array}$$

• A) Stock A has a higher dividend yield than Stock B.
• B) Currently the two stocks have the same price, but over time Stock B's price will pass that of A.
• C) Since Stock A's growth rate is twice that of Stock B, Stock A's future dividends will always be twice as high as Stock B's.
• D) The two stocks should not sell at the same price. If their prices are equal, then a disequilibrium must exist.
• E) Stock A's expected dividend at t = 1 is only half that of Stock B.

---

Definitions:

Memory Response

Memory response refers to the immune system's ability to quickly recognize and react to previously encountered pathogens, providing faster and more effective protection.

Antibody Production

The process by which the immune system creates antibodies, which are proteins that counteract pathogens like bacteria and viruses.

Cytokines

Signaling molecules secreted by cells that have an effect on the behavior of cells, involved in immune responses, inflammation, and the healing process.

Cell-mediated Immune Response

The branch of the immune response that involves the activation of T-cells and the direct destruction of infected cells.