Question 3: Multiple Choice (10 points) Gordon Growth Stocks A and B have the same dividend yield (Dj/P.) of 2% and both stocks pay dividends at the same time. Stock A has a constant expected return of 7% and stock B has a constant expected return of 8%. If the expected dividend growth rates on each of the two stocks are constant over time, then it must be the case that: a. Stock A has an expected dividend growth rate of 7% and stock B has an expected dividend growth rate of 8%. b. Stock A has an expected dividend growth rate of 6% and stock B has an expected dividend growth rate of 5%. c. Both stocks have an expected dividend growth rate of 5%, because expected returns and expected growth need to be equal. d. Both stocks have an expected dividend growth rate of 2%, because expected growth always equals the dividend yield. Stock A has an expected dividend growth rate of 5% and stock B has an expected dividend growth rate of 6%. f. None of the above. e