If a Stock's Dividend Is Expected to Grow at a Constant

question 33

Multiple Choice

If a stock's dividend is expected to grow at a constant rate of 5% a year,which of the following statements is correct?

• A)The expected return on the stock is 5% a year.
• B)The stock's dividend yield is 5%.
• C)The stock's required return must be equal to or less than 5%.
• D)The stock's price 1 year from now is expected to be 5% above the current price.

---

Definitions:

Political Action

Activities undertaken to influence government policy or elections, including lobbying, campaigning, and participating in protests or demonstrations.

Uplift Union

A movement or approach prioritizing the overall well-being, education, and moral upliftment of workers alongside traditional union activities.

Industrial Unions

Unions that organize workers across an entire industry, regardless of their particular skills or trades, to collectively bargain for better conditions.

Craft Unions

Labor unions that represent workers in specific trades or crafts, advocating for their rights, wages, and working conditions.