FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com | Page 102

The preemptive right is important to shareholders
because it
Correct Answer:
Question 18
2 out of 2 points
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?
X Y
Price $25 $25
Expected dividend yield 5% 3%
12% 10%
Required return
Correct Answer:
Stock X pays a higher dividend per share than Stock Y.