Stock X Has the Following Data

question 29

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?

• 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%.

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Definitions:

Real Defense

A legitimate legal defense that can be used to void a contract or document, typically in cases of fraud or invalidity.

Principal Debtor

The primary individual or entity responsible for repaying a debt or fulfilling an obligation.

Personal Defense

Legal justifications used in civil and criminal cases that excuse or minimize the defendant's liability due to personal circumstances.

Attachment

A legal procedure by which a plaintiff can secure a defendant's property in the jurisdiction of the court to satisfy a judgment.