Stocks x amp y have the following data. suppose the stock, Ask an Expert

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problem: Stocks X & Y have the following data. Suppose the stock market is efficient & the stocks are in equilibrium, which of the following statements is CORRECT?

	X	Y
Price	$30	$30
Expected growth (constant)	6%	4%
Required return	12%	10%

[A] One year from now, Stock X's price is expected to be higher than Stock Y's price.

[B] Stock X has the higher expected year-end dividend.

[C] Stock Y has a higher capital gains yield.

[D] Stock X has a higher dividend yield than Stock Y.

[E] Stock Y has a higher dividend yield than Stock X.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M916734

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