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A stock pays annual dividends. It just paid a dividend of $4. The growth rate in the dividend is 2% pa. You estimate that the

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A stock pays annual dividends. It just paid a dividend of $4. The growth rate in the dividend is 2% pa. You estimate that the stock's required return is 8% pa. Both the discount rate and growth rate are given as effective annual rates. Which of the following statements is NOT correct? a. Total return of the stock is equal to the company's long term cost of equity. O b. Total return of the stock is equal to the dividend yield plus the capital return. O c. The share price at time t=0 is $68.00 Od. The dividend at time t=3 will be $4.1616 e. The long-term capital return of the stock is 2%

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