Question and answer
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 equilibriumFalse, because the
required return could be different True, because we are using a dividend valuation model True if markets are semi-strong form efficient True if investors are risk-averse
The answer is "False, because the required return could be different"
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Asked 4/8/2012 3:27:47 PM
Updated 11/18/2012 11:41:50 PM
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The answer is "False, because the required return could be different"
Added 11/18/2012 11:41:50 PM
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