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QUESTION

30. Stocks X and Y have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following

30. 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? Y Price $30$30Expected growth (constant) 6%4%Required return12%10% A) Stock Y has a higher capital gains yield. B) One year from now, Stock X’s price is expected to be higher than Stock Y’s price. C) Stock X has a higher dividend yield than Stock Y. D) Stock Y has a higher dividend yield than Stock X. E) Stock X has the higher expected year-end dividend.

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