Stocks X and Y Have the Following Data ?
A) Stock Y Pays a Higher Dividend Per Share

Multiple Choice

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? $$\begin{array} { l r r } & \mathrm { X } & \mathrm { Y } \\\text { Price } & \$ 25 & \$ 25 \\\text { Expected dividend yield } & 5 \% & 3 \% \\\text { Required return } & 12 \% & 10 \%\end{array}$$
?

A) Stock Y pays a higher dividend per share than Stock X.
B) Stock X pays a higher dividend per share than Stock Y.
C) One year from now,Stock X should have the higher price.
D) Stock Y has a lower expected growth rate than Stock X.
E) Stock Y has the higher expected capital gains yield.