Question
Stocks X and Y have the following data. The market risk premium is 5.0% and the risk-free rate is 4.6%. Assuming the stock market is
Stocks X and Y have the following data. The market risk premium is 5.0% and the risk-free rate is 4.6%. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT?
| X | Y | |
| Beta | 1.50 | 0.50 |
| Constant growth rate | 6.00% | 6.00% |
| a. | Stock Y has the higher expected return. | |
| b. | Stock X has the higher dividend yield. | |
| c. | Both stocks have the same dividend yield.
|
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Profit First For Lawn Care And Landscape Businesses
Authors: Christeen Era, Steven A Rigolosi, Mike Michalowicz
1st Edition
0578908158, 978-0578908151
