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

Question 19

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?
XY Price 30$30$ Expected growth (constant)  6%4% Required return 12%10%\begin{array}{lcc}& \underline{X}& \underline{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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