Which of the Following Statements Is CORRECT,assuming Stocks Are in Equilibrium

question 74

Multiple Choice

Which of the following statements is CORRECT,assuming stocks are in equilibrium?

• A)The dividend yield on a constant growth stock must equal its expected total return minus its expected capital gains yield.
• B)Assume that the required return on a given stock is 13%. If the stock's dividend is growing at a constant rate of 5%, its expected dividend yield is 5% as well.
• C)A stock's dividend yield can never exceed its expected growth rate.
• D)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.
• E)Other things held constant, the higher a company's beta coefficient, the lower its required rate of return.

---

Definitions:

Trainer

a person who teaches skills to others, especially in a work context, focusing on improving their performance and capabilities.

Knowledge Acquired

The information, skills, and expertise that individuals gain through experience, education, or training.

Copy Machines

Machines designed for duplicating documents and images via photocopying, essential in offices for creating multiple copies of paperwork.

Training And Development

Programs and activities designed to improve the skills and competencies of employees within an organization.