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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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