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Assume market is at equilibrium for ABC stock price, and assume that the dividend follows constant growth forever. If the current stock price is $50

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Assume market is at equilibrium for ABC stock price, and assume that the dividend follows constant growth forever. If the current stock price is $50 per share, the dividend is predicted to be $2.5 per share for next year (i.e., D1=$2.5 ), and investors require 12% return for stock, which of the following statements is NOT correct? a) ABC stock's long-term growth in dividend is 7%. b) ABC stock's capital gain yield is 5%. c) ABC stock's expected dividend yield is 5%. d) ABC stock's capital gain yield is 7%. e) ABC stock's dividend yield is lower than or equal to its capital gain yield

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