Which of the Following Statements Is Correct

question 18

Multiple Choice

Which of the following statements is correct?

• A)The dividend yield on a constant growth stock must be equal to the stock's expected total return less its expected capital gains return.
• B)A stock's dividend yield can never exceed its expected growth rate.
• C)A required condition for one to use the constant growth model is that the stock's expected growth rate exceeds its required rate of return.
• D)Other things held constant, the higher a company's beta coefficient, the lower its required rate of return.

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A particular order in which related events, movements, or things follow each other.

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