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A stocks dividend is expected to grow at a constant rate of 5 percent a year. Which of the following statements is most correct? A)
A stocks dividend is expected to grow at a constant rate of 5 percent a year. Which of the following statements is most correct?
A) The expected return on the stock is 5 percent a year.
B) The stocks dividend yield is 5 percent.
C) The stocks price one year from now is expected to be 5 percent higher.
D) All of the statements above are correct.
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