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Stock X Has the Following Data A) the Stock's Expected Dividend Yield and Growth Rate Are

Question 37

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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?  Expected dividend, D1 $3.00 Current Frice, Fo $50 Expected constant growth rate 6.0%\begin{array}{lr}\text { Expected dividend, D1 } & \$ 3.00 \\\text { Current Frice, Fo } & \$ 50 \\\text { Expected constant growth rate } & 6.0 \%\end{array}


A) The stock's expected dividend yield and growth rate are equal.
B) The stock's expected dividend yield is 5%.
C) The stock's expected capital gains yield is 5%.
D) The stock's expected price 10 years from now is $100.00.
E) The stock's required return is 10%.

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