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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 X has a required return of 12% and a dividend yield of 5%, and its dividend is expected to grow at a constant rate forever. Stock Y has a required return of 10%, a dividend yield of 3%, and its dividend is expected to grow at a constant rate forever. Both stocks currently sell for $25 per share. Which of the following statements is CORRECT?
Question 5 options:
Stock X pays a higher dividend per share than Stock Y.
Stock Y pays a higher dividend per share than Stock X.
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.

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