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

Question 7

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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 Esgected growth (canstant)  6%4% Required return 12%10%\begin{array} { l c c } \text { } & X & Y \\\text { Price) } & \$30 & \$30 \\\text { Esgected growth (canstant) } & 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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