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.

Grasp the calculation and implications of direct exchange rates.

Understand the mechanism and purpose of triangle arbitrage in maintaining market equilibrium.

Recognize the scope and importance of the foreign exchange market.

Understand the differences between foreign bonds and Eurobonds.

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