Question: > Moving to another question will save this response. Question 16 of 20 estion 16 5 points over A stock is expected to pay a
> Moving to another question will save this response. Question 16 of 20 estion 16 5 points over A stock is expected to pay a year-end dividend of $2.00, 1.0, D1 - $2.00. The dividend is expected to decline at a rate of 5% a year forever (.5%). If the company is in equilibrium and its expected and required rate of return is 15%, which of the following statements is CORRECT? a. The company's expected stock price at the beginning of next year is $9.50 b. The company's expected capital gains yield is 5% The company's dividend yield 5 years from now is expected to be 10% d. The company's current stock price is $20. e. The constant growth model cannot be used because the growth rate is negative. Moving to another question will save this response Question 16 of 20
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