Two constant growth stocks are in equilibrium, have the same price, and have the same...
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Accounting
Two constant growth stocks are in equilibrium, have the same price, and have the same required rate of return. Which of the following statements is CORRECT?
The two stocks must have the same dividend per share and growth rate.
If one stock has a higher dividend yield, it must have a faster growing dividend.
If one stock has a lower dividend yield, it must also have a lower growth rate.
The two stocks must have unequal dividend growth rates.
The two stocks must have zero growth rates.
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