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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 $30
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 X's price is expected to be higher than Stock Y's price.
Stock X has the higher expected year-end dividend.
Stock Y has a higher capital gains yield.
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