1. Stock X has a required return of 10%, while Stock Y has a required return of 12%.Which of the following statements is CORRECT?

   Answer

   	A.	The stocks must sell for the same price.
   	B.	If the market is in equilibrium, and if Stock Y has thelowerexpected dividend yield, then it must have thehigherexpected growth rate.
   	C.	If Stock X and Stock Y have the same current dividend and the same expected dividend growth rate, then Stock Y must sell for a higher price.
   	D.	If Stock Y and Stock X have the same dividend yield, then Stock Y must have a lower expected capital gains yield than Stock X.
   	E.	Stock Y must have a higher dividend yield than Stock X.