Winston Co

question 87

Multiple Choice

Winston Co.has a dividend-paying stock with a total return for the year of -6.5 percent.Which one of the following must be true?

• A)The dividend must be constant.
• B)The stock has a negative capital gains yield.
• C)The dividend yield must be zero.
• D)The required rate of return for this stock increased over the year.
• E)The firm is experiencing supernormal growth.