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

Question 58

Multiple Choice

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 Price, P0$50 Expected constant growth rate 6.0%\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}
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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.

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