Stock X has the following data.Assuming the stock market is efficient and the stock is in equilibrium,which of the following statements is CORRECT? $$\begin{array} { l r }
\text { Expected dividend, } D _ { 1 } & \$ 3.00 \
\text { Current Price, } P _ { 0 } & \$ 50 \
\text { Expected constant growth rate } & 6.0 \%
\end{array}$$
?
A) The stock's required return is 10%.
B) The stock's expected dividend yield and growth rate are equal.
C) The stock's expected dividend yield is 5%.
D) The stock's expected capital gains yield is 5%.
E) The stock's expected price 10 years from now is $100.00.

Question

Stock X has the following data.Assuming the stock market is efficient and the stock is in equilibrium,which of the following statements is CORRECT? $$\begin{array} { l r } 
\text { Expected dividend, } D _ { 1 } & \$ 3.00 \
\text { Current Price, } P _ { 0 } & \$ 50 \
\text { Expected constant growth rate } & 6.0 \%
\end{array}$$
?
A) The stock's required return is 10%.
B) The stock's expected dividend yield and growth rate are equal.
C) The stock's expected dividend yield is 5%.
D) The stock's expected capital gains yield is 5%.
E) The stock's expected price 10 years from now is $100.00.

Quizplus · Accepted Answer

The Answer of Stock X has the following data.Assuming the stock market is efficient and the stock is in equilibrium,which of the following statements is CORRECT? $$\begin{array} { l r } 
\text { Expected dividend, } D _ { 1 } & \$ 3.00 \
\text { Current Price, } P _ { 0 } & \$ 50 \
\text { Expected constant growth rate } & 6.0 \%
\end{array}$$
?
A) The stock's required return is 10%.
B) The stock's expected dividend yield and growth rate are equal.
C) The stock's expected dividend yield is 5%.
D) The stock's expected capital gains yield is 5%.
E) The stock's expected price 10 years from now is $100.00.

Stock X Has the Following Data ? A) the Stock's Required Return Is 10

Stock X Has the Following Data ?
A) the Stock's Required Return Is 10