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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%

8%

Required return

12%

14%

Stock Y has a higher dividend yield than Stock X.

Stock Y has the higher capital gains yield.

Stock X has a higher dividend yield than Stock Y.

Stock X has the higher expected year-end dividend.

One year from now, Stock X's price is expected to be higher than Stock Y's price.

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