Canvas XG Question 26 4 pts A stock is expected to pay a year-end dividend of $2.00, Le, D. $2.00. The dividend is expected to decline at a rate of 5% a year forever ( 8.5%). If the company is in equilibrium and its expected and required rate of return is 15%, which of the following statements is CORRECT? The company's current stock price is $20. The company's dividend yield 5 years from now is expected to be 10% The constant growth model cannot be used because the growth rate is negative The company's expected capital gains yield is 5%. The company's expected stock price at the beginning of next year is $9.50 4 pts Question 27 The expected return on Nonsense Corporation's stock is 14%. The stock's dividend is expected to grow at a constant rate of 8%, and it currently sells for $50 a share. Which of the following statements is CORRECT The stocks dividend yield is 7% FYO 7 8 6 4 5 VAL ERT