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? $$\begin{array} { l r r }
& \mathrm { X } & \mathrm { Y } \
\text { Price } & \$ 25 & \$ 25 \
\text { Expected dividend yield } & 5 \% & 3 \% \
\text { Required return } & 12 \% & 10 \%
\end{array}$$
?
A) Stock Y pays a higher dividend per share than Stock X.
B) Stock X pays a higher dividend per share than Stock Y.
C) One year from now,Stock X should have the higher price.
D) Stock Y has a lower expected growth rate than Stock X.
E) Stock Y has the higher expected 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? $$\begin{array} { l r r } 
& \mathrm { X } & \mathrm { Y } \
\text { Price } & \$ 25 & \$ 25 \
\text { Expected dividend yield } & 5 \% & 3 \% \
\text { Required return } & 12 \% & 10 \%
\end{array}$$
?
A) Stock Y pays a higher dividend per share than Stock X.
B) Stock X pays a higher dividend per share than Stock Y.
C) One year from now,Stock X should have the higher price.
D) Stock Y has a lower expected growth rate than Stock X.
E) Stock Y has the higher expected 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? $$\begin{array} { l r r } 
& \mathrm { X } & \mathrm { Y } \
\text { Price } & \$ 25 & \$ 25 \
\text { Expected dividend yield } & 5 \% & 3 \% \
\text { Required return } & 12 \% & 10 \%
\end{array}$$
?
A) Stock Y pays a higher dividend per share than Stock X.
B) Stock X pays a higher dividend per share than Stock Y.
C) One year from now,Stock X should have the higher price.
D) Stock Y has a lower expected growth rate than Stock X.
E) Stock Y has the higher expected capital gains yield.

Stocks X and Y Have the Following Data ? A) Stock Y Pays a Higher Dividend Per Share

Stocks X and Y Have the Following Data ?
A) Stock Y Pays a Higher Dividend Per Share