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Stock X has the following data. Assuming the stock market is efficient and the stock is in equilibrium, which of the following statements is CORRECT?
Stock X has the following data. Assuming the stock market is efficient and the stock is in equilibrium, which of the following statements is CORRECT?
Expected dividend, D1 $3.00
Current Price, P0 $50
Expected constant growth rate 6.0%
a. The stock's expected capital gains yield is 5%.
b. The stock's required return is 10%.
c. The stock's expected dividend yield is 5%.
d. The stock's expected price 10 years from now is $100.00.
e. The stock's expected dividend yield and growth rate are equal.
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