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

Question 73

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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 Price, P0 50$ Expected constant growth rate 6.0%\begin{array}{lcc}\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 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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