Question
The expected return on some companys stock is 14%. The stocks dividend is expected to grow at a constant rate of 8%, and it currently
The expected return on some companys stock is 14%. The stocks dividend is expected to grow at a constant rate of 8%, and it currently sells for $50 a share. Which of the following statements is CORRECT?
| The stock price is expected to be $50 a share one year from now. | ||
| The stocks dividend yield is 8%. | ||
| The stocks dividend yield is 7%. | ||
| The stock price is expected to be $48 a share one year from now. | ||
| The stocks dividend yield is 6%. |
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Risk Management And Financial Institutions
Authors: John C. Hull
3rd Edition
1118269039, 9781118269039
