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The data for three stocks X, Y and Z are below, It is assumed that the stock market is efficient

Accounting Oct 26, 2020

The data for three stocks X, Y and Z are below, It is assumed that the stock market is efficient. Besides, the stocks are in equilibrium, which of the following statements is CORRECT?

                                    X.           Y.          Z

Required return.     13%.       10%.    12%

Market price.          $50.       $25.      $40

Expected growth.  10%.       7%.        9%

a. These three stocks must have the same dividend yield.

b. These three stocks should have the same price.

c. These three stocks should have the same expected return.

d. These three stocks must have the same expected year-end dividend.

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