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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

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

$30

$30

Expected growth (constant)

6%

4%

Required return

12%

10%

a. Stock X has a higher dividend yield than Stock Y.

b. Stock Y has a higher dividend yield than Stock X.

c. One year from now, Stock Xs price is expected to be higher than Stock Ys price.

d. Stock X has the higher expected year-end dividend.

e. Stock Y has a higher capital gains yield.

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