A stock just paid a dividend of $5 and this is expected to grow at an annual rate of 1.5% pa. You estimate that the stock's required return is 10% pa. Both the discount rate and growth rate are given as effective annual rates, and dividends are paid annually.

Which of the following statements is NOT correct? All answers are rounded to two decimal places.

a.

The share price at time t=0 is $59.71

b.

Total return of the stock is equal to the company's long term cost of equity.

c.

The dividend at time t=3 will be $5.15

d.

The long-term capital return of the stock is 1.5%

e.

Total return of the stock is equal to the dividend yield plus the capital return.