Respuesta :
The correct statement is these two stocks must have the same dividend yield.
What is the dividend yield of the stock?
Dividend yield of a stock is the dividend per share divided by the total market price of the stock.
Dividend yield = dividend per share / market price
Dividend per share = market value x (required return - expected growth)
Dividend per share for Stock X = $25 x (10% - 7%) = $0.75
Dividend per share for Stock Y = $40 x (12% - 9%) = $1.20
Dividend yield for Stock X = 0.75 / 25 = 0.03
Dividend yield for Stock Y = 1.20 / 40 = 0.03
Here is the complete question:
Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT? A B Required return 10% 12%Market price $25 $40Expected growth 7% 9%
A) These two stocks should have the same price.
B) These two stocks must have the same dividend yield.
C) These two stocks should have the same expected return.
D) These two stocks must have the same expected capital gains yield.
E) These two stocks must have the same expected year-end dividend.
To learn more about dividends, please check: https://brainly.com/question/13672624
