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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 thefollowingstatements are correct?

Stocks X and Y have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of thefollowingstatements are correct?

Stocks: X Y

Price: $25 $25

Expected dividendyield 5% 3%

Required Return 12% 10%

A) Stock Y pays a higher dividend per share than Stock X.

B) Stock X pays a higher dividend per share than Stock Y

C) One year from now, stock X should have the higher price.

D) Stock Y has a lower expected growth rate than stock X

E) Stock Y has the higher expected capital gainsyield.

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