The Expected Return on Northeast Corporation's Stock Is 14

question 22

Multiple Choice

The expected return on Northeast Corporation's stock is 14%.The stock's dividend is expected to grow at a constant rate of 8%,and it currently sells for $50 a share.Which of the following statements is correct?

• A)The stock's dividend yield is 7%.
• B)The stock's dividend yield is 8%.
• C)The current dividend per share is $4.00.
• D)The stock price is expected to be $54 a share 1 year from now.

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