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

• 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.

---

Definitions:

Permanent Storage

The long-term preservation of information or data, typically in a way that it remains accessible for future reference.

Hippocampus

A critical part of the brain that plays a vital role in the creation of memories and the ability to navigate space.

Permanent Storage

A term generally used to refer to the long-term preservation of data or information in a manner that prevents its loss over time.

Good Night's Rest

Adequate, quality sleep, typically considered to be around 7 to 9 hours for adults, which is essential for physical, mental, and emotional health.