1. Stock X and Stock Y sell for the same price in todays market. Stock X has a required return of 12 percent. Stock Y has a required return of 10 percent. Stock Xs dividend is expected to grow at a constant rate of 6 percent a year, while Stock Ys dividend is expected to grow at a constant rate of 4 percent. Assume that the market is in equilibrium and expected returns equal required returns. Which of the following statements is most correct?

1. Stock X has a higher dividend yield than Stock Y.
2. Stock Y has a higher dividend yield than Stock X.
3. One year from now, Stock Xs price is expected to be higher than Stock Ys price.
4. Statements A and C are correct.
5. Statements B and C are correct.

I don't get why A is not correct and C is correct instead?