Q7. Chapters 9-12

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?

	X	Y
Price	$25	$25
Expected dividend yield	5%	3%
Required return	12%	10%

Group of answer choices

*Stock Y pays a higher dividend per share than Stock X.

*Stock X pays a higher dividend per share than Stock Y.

*One year from now, Stock X should have the higher price.

*Stock Y has a lower expected growth rate than Stock X.

*Stock Y has the higher expected capital gains yield