If two firms have the same current dividend and the same expected growth rate,their stocks must sell at the same current price or else the market will not be in equilibrium.

Question

Quizplus · Accepted Answer

The current price of a stock is also affected by the required return, which could be different for different firms. Therefore, two firms with the same current dividend and expected growth rate can have different current prices if they have different required returns.

If Two Firms Have the Same Current Dividend and the Same