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Stock X Has the Following Data D1D _ { 1 }

Question 33

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? Eagnected diviend D1D _ { 1 }         $3.00
Curtent Price, P0P _ { 0 }           $50
Eogpected constant prowth rate      6.0%


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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