If a stock has a required rate of return rs = 14 percent, and its dividend grows at a constant rate of 5 percent, this implies that the stock's dividend yield is 7 percent under the dividend growth model. Question 5 options: True False

If a stock's dividend is expected to grow at a constant rate of 5 percent a year, the expected return on the stock is 5 percent a year. Question 6 options: True False FIA Industries just paid a dividend of $3.0 a share (i.e., D0 = 3.0 ). The dividend is expected to grow 5% a year forever. What is the expected dividend per share for year 7 (i.e., D 7 )? Round your answers to two decimal places.

if a stock's dividend is expected to grow at a constant rate of 5 percent a year, the expected return on the stock is 5 percent a year.

Question 6 options:

	True
	False