Stocks A and B have the following data.Assuming the stock market is efficient and the stocks are in equilibrium,which of the following statements is CORRECT?

A)The two stocks should have the same expected dividend.
B)The two stocks could not be in equilibrium with the numbers given in the question.
C)A's expected dividend is $0.50.
D)B's expected dividend is $0.75.
E)A's expected dividend is $0.75 and B's expected dividend is $1.20.

Question

Stocks A and B have the following data.Assuming the stock market is efficient and the stocks are in equilibrium,which of the following statements is CORRECT? ​

A)The two stocks should have the same expected dividend. 
B)The two stocks could not be in equilibrium with the numbers given in the question. 
C)A's expected dividend is $0.50. 
D)B's expected dividend is $0.75. 
E)A's expected dividend is $0.75 and B's expected dividend is $1.20.

Quizplus · Accepted Answer

The Answer of Stocks A and B have the following data.Assuming the stock market is efficient and the stocks are in equilibrium,which of the following statements is CORRECT? ​

A)The two stocks should have the same expected dividend. 
B)The two stocks could not be in equilibrium with the numbers given in the question. 
C)A's expected dividend is $0.50. 
D)B's expected dividend is $0.75. 
E)A's expected dividend is $0.75 and B's expected dividend is $1.20.

Stocks a and B Have the Following Data