Question 19 (5 points)

38. 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%

Question 19 options:

	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.