Stock X Has the Following Data

question 49

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? ​

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

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Definitions:

Derailment

A thought disorder in which a person's speech is characterized by a series of loosely connected ideas; often seen in schizophrenia.

Avolition

A lack of motivation or ability to initiate and persist in goal-directed activities, often seen in psychiatric conditions like schizophrenia.

Alogia

A symptom commonly found in schizophrenia, characterized by a significant reduction in the amount of speech.

Motivation

The internal and external processes that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject.