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

question 44

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? $$\begin{array} { l c c } & \mathrm { X } & \mathrm { Y } \\\text { Price } & \$ 30 & \$ 30 \\\text { Expected growth (constant) } & 6 \% & 4 \% \\\text { Required return } & 12 \% & 10 \%\end{array}$$

• 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.