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

Question

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

Quizplus · Accepted Answer

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

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