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A stock is expecied to pay a year end dividend of 52.00, i. 6,D_(1)=52.00 . The dividend is oppected to decline at a Wh, dien

A stock is expecied to pay a year end dividend of 52.00, i.

6,D_(1)=52.00

. The dividend is oppected to decline at a Wh, dien which of the following etatements is CORRET?\ a. The company's current stock price is

$20

.\ b. The company's dividend yield 5 yearn from now is expected to be

10%

\ c. The constant growth model cannot be used because the growh rate is negative\ d. The company's expected capital gains yield is

5%

.\ c. The company's expected stock price at the beginning of next year is

$9.50

.

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A stock is expecied to pay a year end dividend of 52.00 , i., D1=92.00. The dividend is opected to decline as a then which of the following statements is CORRECT? a. The company's current stock price is $20. b. The company's dividend yield 5 years from now is expected io be 10%. c. The constant growth model cannot be used because the growh rate is negative d. The company's expected capital gains yield is 5%. 6. The company's expected stock price at the beginning of next year is $9.50

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