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

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?


$\begin{array}{lcc}&\underline { X } & \underline { Y } \\\text { Price } & \$ 25 & \$ 25 \\\text { Expected dividend yield } & 5 \% & 3 \% \\\text { Required return } & 12 \% & 10 \%\end{array}$

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