If a stock's dividend is expected to grow at a constant rate of 5% a year, which of the following statements is CORRECT? The stock is in equilibrium. 

a. The price of the stock is expected to decline in the future. 

b. The stock's required return must be equal to or less than 5%.

c. The expected return on the stock is 5% a year. 

d. The stock's dividend yield is 5%. 

e. The stock's price one year from now is expected to be 5% above the current price

Answer rating: 100% (QA)

The growth rate is 5 that means the requried rate of ... View the full answer