A firm has stock outstanding with a current stock price of $50. The expected dividend this year is $5 and dividends are expected to grow by 2% per year. Which of the following statements is true?

A. The stock price implies that the stocks required return is 12%

B. None of the above are true

C. The stock price implies that the stocks dividend yield is 2%

D. The stock price is expected to increase by 5% per year

E. The stock price implies that the stocks capital gains yield is 10%