Question 2 Not yet saved A stock pays annual dividends. It just paid a dividend of $4. The growth rate in the dividend is 2% pa. You estimate that the stock's required return is 8% pa. Both the discount rate and growth rate are given as effective annual rates. Which of the following statements is NOT correct? Marked out of 4.00 Remove flag O a. The share price at time t=0 is $68.00 Ob. The dividend at time t=3 will be $4.1616 O c. Total return of the stock is equal to the dividend yield plus the capital return. O d. Total return of the stock is equal to the company's long term cost of equity. Oe. The long-term capital return of the stock is 2%