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Stock x has a required return of 1 2 % and a dividend yield of 5 % , and its dividend is expected to grow
Stock has a required return of and a dividend yield of and its dividend is expected to grow at a constant rate forever. Stock has a required return of a dividend yield of and its dividend is expected to grow at a constant rate forever. Both stocks currently sell for $ per share. Which of the following statements is correct?
a Stock pays a higher dividend per share than Stock
b Stock pays a higher dividend per share than Stock Y
c Stock has a lower expected growth rate than Stock
d Stock has a higher expected capital gains yield than Stock X
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