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

Question

Quizplus · Accepted Answer

Stock prices are influenced by a variety of factors beyond current dividends and expected growth rates, including risk, market conditions, and investor perceptions, which can lead to different stock prices even with similar dividends and growth expectations.

If Two Firms Have the Same Current Dividend and the Same