Multiple Choice
Suppose the dividend yield is currently 5%. If annualized short term nominal interest rates are 6%,expected inflation is 1% per year,and the equity risk premium is 3%,then annual dividend growth is expected to be
A) 1%
B) 2%
C) 3%
D) 4%
E) 5%
Correct Answer:
Verified
Correct Answer:
Verified
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