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? $$\begin{array} { l r } \text { Expected dividend, } D _ { 1 } & \$ 3.00 \\\text { Current Price, } P _ { 0 } & \$ 50 \\\text { Expected constant growth rate } & 6.0 \%\end{array}$$
?

• 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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