Stocks X and Y Have the Following Data

question 59

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?

• 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.

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Definitions:

Compromise

A way of resolving disagreements in which each party gives up something but also gains something in return.

Direct Coping

The practice of tackling a stressor head-on and taking active steps to remove or alleviate its impact.

Problem-Oriented

A methodological approach focusing on identifying, analyzing, and solving specific problems.

Irrational Beliefs

Beliefs that are not based on reason or logical thinking, often leading to negative emotional states or behaviors.