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Stocks D and Stock R have the same required total return (1096) and the same price ($20). Stock D's dividend is expected to grow at
Stocks D and Stock R have the same required total return (1096) and the same price ($20). Stock D's dividend is expected to grow at 6% per year constantly and forever. Stock R's dividend is expected to grow at 3% per year constantly and forever. Based on these information, which of the following statements is correct? O Since Stock D's growth rate is twice that of Stock R, Stock D's future dividends will always be twice as high as Stock R's. Stock D's expected dividend at t = 1 is only half that of Stock R. Stock D has a higher dividend yield than Stock R. Currently the two stocks have the same price, but over time Stock D's price passes that of Stock R
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