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f a stocks dividend is expected to grow at a constant rate of 5% a year, which of the following statements is CORRECT? The stock
f a stocks dividend is expected to grow at a constant rate of 5% a year, which of the following statements is CORRECT? The stock is in equilibrium.
The expected return on the stock is 10% a year. | ||
The stocks dividend yield is 5%. | ||
The price of the stock is expected to decline in the future. | ||
The stocks required return must be equal to or less than 5%. | ||
The stocks price one year from now is expected to be below the current price. |
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