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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? Price: $25 $25 Expected dividend yield: 5% 390 Required return: 12% 10% One year from now, Stock X should have the higher price. Stock Y pays a higher dividend per share than Stock X Stock Y has the higher expected capital gains yield. Stock Y has a lower expected growth rate than Stock X Stock X pays a higher dividend per share than Stock Y
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