|
Title: Stocks X and Y sell at the same price. Stock X has a required return of 13% while Stock Ys required ... Post by: ericayi on Aug 6, 2023 Stocks X and Y sell at the same price. Stock X has a required return of 13% while Stock Y’s required return is 20%. Stock X’s dividend is expected to grow at a constant rate of 5% a year, while Stock Y’s dividend is expected to grow at a constant rate of 12%. If the market is in equilibrium so that expected returns equal required returns, which of the following statements is correct? ▸ Stock X has a higher dividend yield than Stock Y. ▸ Stock Y has a higher dividend yield than Stock X. ▸ Stock Y has a lower capital gains yield. ▸ One year from now, Stock X’s price is expected to be lower than Stock Y’s price. Title: Re: Stocks X and Y sell at the same price. Stock X has a required return of 13% while Stock Ys required ... Post by: ikidding on Aug 6, 2023 Content hidden
|