Suppose we have two companies, X and Y, and it is expected both will pay a fixed dividend of $3 per share every year forever. However, the stock price of X is higher than the stock price of Y. Which of the following must be true?

Group of answer choices

The dividends of stock X are more valuable.

Stock Y is underpriced.

Stock X is overpriced.

The equity cost of capital of Y is higher than the one of X.