Question: A stock is expected to pay a year - end dividend of $ 2 . 0 0 , i . e . , D 1
A stock is expected to pay a yearend dividend of $ ie D $ The dividend is expected to decline at a rate of a year forever g If the company is in equilibrium and its expected and required rate of return is then which of the following statements is CORRECT?
The companys expected capital gains yield is
The companys current stock price is $
The constant growth model cannot be used because the growth rate is negative.
The companys expected stock price at the beginning of next year is $
The companys dividend yield years from now is expected to be
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