Suppose Monsters Inc. is expected to pay a dividend of $3 per share in October 2023. The dividend is then expected to grow year-over-year at a constant rate of 4% in perpetuity and paid each year in October. The equity cost of capital for Rio Hondo Inc. is 10%.

Which of the following are true? (A full answer requires two choices)

a) The expected capital gain rate on Monsters Inc.s stock from October 2022 to end of 2023 is zero.

b) The expected capital gain rate on Monsters Inc. stock from September 2023 to end of 2023 is zero.

c) The expected capital gain rate on Monsters Inc. stock from September 2023 to end of 2023 is positive.

d) The expected capital gain rate on Monsters Inc.s stock from October 2022 to the end of 2023 is positive.

e) The expected capital gain rate on Monsters Inc stock from September 2023 to end of 2023 is negative.

f) The expected capital gain rate on Monsters Inc.s stock from October 2022 to end of 2023 is negative.