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bmwprincess bmwprincess
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9 months ago
Stocks A and B have the same price, but Stock A has the lower required rate of return. Which of the following statements is correct?


If Stock A has a lower dividend yield than Stock B, its expected capital gains yield must be higher than Stock B’s.



Stock B must have a lower dividend yield than Stock A.



Stock A must have a lower dividend yield than Stock B.



If Stock A has a higher dividend yield than Stock B, its expected capital gains yield must be lower than Stock B’s.

Textbook 
 Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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bolusmachinebolusmachine
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9 months ago
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