Assume all firms have the same expected dividends. If they have different expected returns, how will their market values and expected returns be related? What about the relation between their dividend yields and expected returns? (Select the best choice below.) O A. Firms with high expected returns will have high market values and low dividend yields. O B. Firms with low expected returns will have low market values and low dividend yields. OC. Firms with low expected returns will have high market values and low dividend yields. O D. Firms with high expected returns will have high market values and high dividend yields.
Assume all firms have the same expected dividends. If they have different expected returns, how will their market values and expected returns be related? What about the relation between their dividend yields and expected returns? (Select the best choice below.) O A. Firms with high expected returns will have high market values and low dividend yields. O B. Firms with low expected returns will have low market values and low dividend yields. OC. Firms with low expected returns will have high market values and low dividend yields. O D. Firms with high expected returns will have high market values and high dividend yields.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Assume all firms have the same expected dividends. If they have different expected returns, how will their market values and expected returns be related? What about
the relation between their dividend yields and expected returns?
(Select the best choice below.)
O A. Firms with high expected returns will have high market values and low dividend yields.
O B. Firms with low expected returns will have low market values and low dividend yields.
O C. Firms with low expected returns will have high market values and low dividend yields.
O D. Firms with high expected returns will have high market values and high dividend yields.
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