Final answer:
The correct statement cannot be determined with the given information as there is not enough data to calculate specific dividend yields or capital gains for Stocks A and B. Historically, dividends and capital gains have contributed differently to total stock returns, with dividends being lower in recent times.
Step-by-step explanation:
When comparing Stocks A and B, and assuming the stock market is efficient and the stocks are in equilibrium, statement d) 'These two stocks must have the same expected capital gains yield' could be the correct answer. However, with the information given, we specifically cannot conclude any of the provided statements to be correct because there is not enough data to calculate dividend yield or expected capital gains specifically for these two stocks.
The information provided shows that required returns and market prices are different, while expected growth rates are also different. In an efficient market, stock price is determined by the present value of future cash flows, which are made up of expected dividends and expected capital gains. As the dividend yield and capital gains yield are not provided directly, we cannot accurately determine the year-end dividends, capital gains, or whether the dividend yields are the same.
It's important to understand the various components of stock returns, such as dividends and capital gains. These have historically varied, as indicated by historical data from the S&P 500 index. Currently, dividends tend to be lower, and stock prices are influenced more by expected capital gains. This shifts the components of total return over different periods.