Stocks a and B Have the Following Data

question 72

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 could not be in equilibrium with the numbers given in the question.
• B) A's expected dividend is $0.50.
• C) B's expected dividend is $0.75.
• D) A's expected dividend is $0.75 and B's expected dividend is $1.20.
• E) The two stocks should have the same expected dividend.

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Definitions:

Modernization

The process through which a society transforms itself from a traditional to a more contemporary form, often seen in technological advancement, social change, and economic development.

Industrialization

The development of industries in a country or region on a wide scale, often leading to significant social, economic, and cultural changes.

Agricultural Development

The process and practices involved in improving farming methods and the production of crops and livestock to increase food supply, efficiency, and sustainability.

Politicization

The process of making an issue political, thereby bringing it into the domain of public debate and decision-making.