Stock X Has the Following Data

question 52

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? Expected dividend,D₁
$3) 00
Current Price,P₀
$50
Expected constant growth rate
6) 0%

• A)The stock's expected dividend yield and growth rate are equal.
• B)The stock's expected dividend yield is 5%.
• C)The stock's expected capital gains yield is 5%.
• D)The stock's expected price 10 years from now is $100.00.
• E)The stock's required return is 10%.

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Definitions:

Resilience

The capacity to recover quickly from difficulties; mental toughness and adaptability in the face of challenges.

Optimism

The tendency to hold a hopeful and positive outlook towards future outcomes.

Flexible

The ability to adapt quickly and effectively to new conditions or situations.

Independent

Not influenced or controlled by others; self-reliant.