Business, 07.03.2020 04:11 dbzrules02

Stocks A and B have the same price and are in equilibrium, but Stock A has the higher required rate of return. Which of the following statements is CORRECT?a. If Stock A has a lower dividend yield than Stock B, its expected capital gains yield must be higher than Stock B's. b. Stock A must have a higher dividend yield than Stock B. c. Stock A must have both a higher dividend yield and a higher capital gains yield than Stock B. d. If Stock A has a higher dividend yield than Stock B, its expected capital gains yield must be lower than Stock B's. e. Stock B must have a higher dividend yield than Stock A.

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Stocks A and B have the same price and are in equilibrium, but Stock A has the higher required rate...