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Stocks X and Y Have the Following Data A) Stock Y Has a Higher Dividend Yield Than Stock

Question 44

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Stocks X and Y have the following data.Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT? XY Price $30$30 Expected growth (constant)  6%4% Required return 12%10%\begin{array} { l c c } & \mathrm { X } & \mathrm { Y } \\\text { Price } & \$ 30 & \$ 30 \\\text { Expected growth (constant) } & 6 \% & 4 \% \\\text { Required return } & 12 \% & 10 \%\end{array}


A) Stock Y has a higher dividend yield than Stock X.
B) One year from now, Stock X's price is expected to be higher than Stock Y's price.
C) Stock X has the higher expected year-end dividend.
D) Stock Y has a higher capital gains yield.
E) Stock X has a higher dividend yield than Stock Y.

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