If a stock's dividend is expected to grow at a constant rate of 5% a year, which of the following statements is CORRECT?a.The expected return on the stock is 5% a year.b.The stock's dividend yield is 5%.c.The price of the stock is expected to decline in the future.d.The stock's required return must be equal to or less than 5%.e.The stock's price one year from now is expected to be 5% above the current price.
This question was answered on: May 23, 2022
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