Which one of the following statements is correct? A Preferred stocks have constant dividends. B. An increase in the required return will decrease the capital gains yield. c A constant dividend stock cannot be valued using the dividend growth model. The capital gains yield is the annual rate of change in coupons. The w Upper Crust Bakers just paid an annual dividend of $2.80 a share and is expected to increase that amount by 4 percent per year. If you are planning to buy 1.000 shares of this stock now, how much should you expect to pay per share if the market rate of retum for this type of security is 11.50 percent at the time of your purchase? A $37.33 8 $38.16 c $40,38 O $38.83