A stock is expected to pay a year$-$end dividend of $$2\mathrm{.}00,$ i$.$e$.,D1=$$$2\mathrm{.}00.$ The dividend is expected to decline at a rate of $5\%$ a year forever $)=(-5\%.$ If the company is in equilibrium and its expected and

required rate of return is $15\%,$ which of the following statements is CORRECT?

a$.$ The company's current stock price is $$20.$

b$.$ The company's expected capital gains yield is $5\%.$

c$.$ The company's dividend yield $5$ years from now is expected to be $10\%.$

d$.$ The constant growth model cannot be used because the growth rate is negative.

e$.$ The company's expected stock price at the beginning of next year is $$9\mathrm{.}50.$

Marissa, a product manager, thinks her company's InstaCup coffee maker is currently in the growth stage of the product life cycle. If so$,$ the profits for the InstaCup coffee maker

and the number of

competitors

a$.$ are negative; is growing

b$.$ are declining; is growing

c$.$ are declining; is declining

d$.$ are increasing; is growing

e$.$ have peaked; is declining

Marissa, a product manager, thinks her company's InstaCup coffee maker is currently in the growth stage of the product life cycle. If so$,$ the profits for the InstaCup coffee maker

and the number of

competitors

a$.$ are negative; is growing

b$.$ are declining; is growing

c$.$ are declining; is declining

d$.$ are increasing; is growing

e$.$ have peaked; is declining