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Author Question: Stock A has a required return of 15% and a price of $32, and its dividend is expected to grow at a ... (Read 71 times)

Caileynorton

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on: Aug 7, 2023
Stock A has a required return of 15% and a price of $32, and its dividend is expected to grow at a constant rate of 8% per year. Stock B has a required return of 19% and a price of $45, and its dividend is expected to grow at a constant rate of 10% per year. Which of the following statements is correct?

◦

If the stock market were efficient, these two stocks would have the same price.


◦

The two stocks have the same expected capital gains yield.


◦

If the stock market were efficient, Stock A is expected to pay more dividends in the coming year than Stock B.


◦

The dividend yield of Stock A is lower than that of Stock B.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by Caileynorton on Aug 7, 2023

Hamad

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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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Caileynorton

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Reply 2 on: Aug 7, 2023
Gracias!

vickybb89

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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