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Stocks A and B have the following data. Assuming the stock market is efficient and the stocks prices are in equilibrium – i.e. – prices are equal to their intrinsic value, which of the following statements is CORRECT?   A B Price $25 $40 Expected growth 7% 9% Expected return 10% 12% ​ The two stocks should have the same expected dividend. The two stocks could not be in equilibrium with the numbers given in the question. A's expected dividend is $0.50. B's expected dividend is $0.75. A's expected dividend is $0.75 and B's expected dividend is $1.20.

Stocks A and B have the following data. Assuming the stock market is efficient and the stocks prices are in equilibrium – i.e. – prices are equal to their intrinsic value, which of the following statements is CORRECT?   A B Price $25 $40 Expected growth 7% 9% Expected return 10% 12% ​ The two stocks should have the same expected dividend. The two stocks could not be in equilibrium with the numbers given in the question. A's expected dividend is $0.50. B's expected dividend is $0.75. A's expected dividend is $0.75 and B's expected dividend is $1.20.

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3 - Stocks A and B have the following data. Assuming the stock market is efficient and the stocks prices are in equilibrium – i.e. – prices are equal to their intrinsic value, which of the following statements is CORRECT?

 

A

B

Price

$25

$40

Expected growth

7%

9%

Expected return

10%

12%

​

  1. The two stocks should have the same expected dividend.
  2. The two stocks could not be in equilibrium with the numbers given in the question.
  3. A's expected dividend is $0.50.
  4. B's expected dividend is $0.75.
  5. A's expected dividend is $0.75 and B's expected dividend is $1.20.

 

 

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