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 equilibrium.
A) false, because the required return could be different
B) true, because we are using a dividend valuation model
C) true, if markets are semi-strong form efficient
D) true, if investors are risk-averse
A
Business
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Operations management includes service industries but not manufacturing firms
Indicate whether the statement is true or false.
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