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:

Continuing Research

Ongoing systematic investigation to establish facts or principles or to collect information on a subject.

Rationalist

A person who emphasizes reason and evidence in forming knowledge and justifying beliefs, typically regarding philosophical and scientific matters.

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The principles or beliefs that form the foundation of political theories and actions.

Economic Values

The principles or standards that guide individuals or societies in deciding how resources are allocated.