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?

A)Stock X has a higher dividend yield than Stock Y.
B)Stock Y has a higher dividend yield than Stock X.
C)One year from now, Stock X's price is expected to be higher than Stock Y's price.
D)Stock X has the higher expected year-end dividend.
E)Stock Y has a higher capital gains yield.

Question

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? ​

A)Stock X has a higher dividend yield than Stock Y. 
B)Stock Y has a higher dividend yield than Stock X. 
C)One year from now, Stock X's price is expected to be higher than Stock Y's price. 
D)Stock X has the higher expected year-end dividend. 
E)Stock Y has a higher capital gains yield.

Quizplus · Accepted Answer

The Answer of 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? ​

A)Stock X has a higher dividend yield than Stock Y. 
B)Stock Y has a higher dividend yield than Stock X. 
C)One year from now, Stock X's price is expected to be higher than Stock Y's price. 
D)Stock X has the higher expected year-end dividend. 
E)Stock Y has a higher capital gains yield.

Stocks X and Y Have the Following Data