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Stocks X and Y have the following data. Assuming the stock market is in equilibrium, which of the following statements is correct? X Y Price

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

X

Y

Price

$30

$30

Expected Growth

6%

4%

Required Return

12%

10%

Stock X has a higher dividend yield than Stock Y.
Stock Y has a higher dividend yield than Stock X.
One year from now, Stock Xs price is expected to be higher than Stock Ys price.
Stock X has the higher expected year-end dividend.
Stock Y has a higher capital gains yield.

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