A stock is expected to pay a year-end dividend of $2.00 a share (D1 = $2.00). The dividend is expected to decline at a constant rate of 5% per year (g = -5%). The companys expected and required rate of return is 15%. Which of the following statements is CORRECT?

	A.	The companys current stock price is $20
	B.	The companys dividend yield 5 years from now is expected to be 10%.
	C.	The companys expected capital gains yield is 5%.
	D.	The companys stock price next year is expected to be $9.50
	E.	The constant growth model cannot be used because the growth rate is negative.