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Author Question: Stocks A and B have the same required return of 20% and the same price, $30. Stock As dividend is ... (Read 22 times)

dusk108

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on: Aug 7, 2023
Stocks A and B have the same required return of 20% and the same price, $30. Stock A’s dividend is expected to grow at a constant rate of 4% per year, while Stock B’s dividend is expected to grow at a constant rate of 16% per year. Which of the following statements is correct?

◦

Since Stock B’s growth rate is four times that of Stock A, Stock A’s future dividends will always be four times as high as Stock B’s. 


◦

Stock A has a lower dividend yield than Stock B.


◦

Currently the two stocks have the same price, but over time Stock A’s price will pass that of Stock B.


◦

Stock A’s expected dividend at t = 1 is four times that of Stock B.

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Marked as best answer by dusk108 on Aug 7, 2023

jbsuccess1

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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dusk108

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

kthug

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Reply 3 on: Yesterday
Excellent

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