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Stocks a and B Have the Following Data

Question 7

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? ​
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 is $0.75 and B's expected dividend is $1.20.


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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