Stocks X and Y Have the Following Data

question 66

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:

Amphibia

A class of cold-blooded vertebrates that includes frogs, toads, salamanders, and newts, distinguished by their ability to live both in water and on land.

Vertebrate Classes

Categories within the subphylum Vertebrata, distinguishing animals based on key features like presence of a backbone, including mammals, birds, reptiles, amphibians, and fish.

Cartilaginous Skeleton

A type of skeleton found in certain animals where the principal structural component is cartilage, rather than bone.

Paired Fins

Appendages found on fish that are used for stabilization, steering, and propulsion through the water.