12. Which of the following statements is CORRECT, assuming stocks are in equilibrium?

a. Assume that the required return on a given stock is 13%. If the stock's dividend is growing at a constant rate of 5%, its expected dividend yield is 5% as well.

b. Other things held constant, the higher a company's beta coefficient, the lower its required rate of return.

c. The dividend yield on a constant growth stock must equal its expected total return minus its expected capital gains yield.

d. A stock's dividend yield can never exceed its expected growth rate.

e. A required condition for one to use the constant growth model is that the stock's expected growth rate exceeds its required rate of return.