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If a stock's dividend is expected to grow at a constant rate of 5% a year, which of the following statements is CORRECT? a. The
If a stock's dividend is expected to grow at a constant rate of 5% a year, which of the following statements is CORRECT?
a. The expected return on the stock is 5% a year.
b. The stock's dividend yield is 5%.
c. The price of the stock is expected to decline in the future.
d. The stock's required return must be equal to or less than 5%.
e. The stock's price one year from now is expected to be 5% above the current price
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