The constant growth valuation formulo has dividends in the numerator. Diyldendis are divided by the difference betheten the required return and dividead growth rate as follows: P0=1+1bi Which of the following statements best describes howja change in a firm's stock price would atfect a stock's capital gairs yieid? The capital gains yleid on a stock that the investor atready owns has an inverse relationship with the firm's expected future stock orice The capital gains yicid on a stock that the investor atready owns has a direct relationship with the firm's expected future stack price. Waiter Utilities is a dividend-parying company and is expected to pay an annual dividend of $2.45 at the end of the year Its dividend is expected ta grow at a constant rate of 6.50\% per year. If Walter's stock currently trades for $29,00 per share, what is the expected rate of refurn? Which of the following conditions must hold true for the constant growth valustion formula to be useful and give meaningful results? The company's growth rate needs to change as the compary matures- The company's stock cannot be a zero growth stock. The required rate of return, rs, must be greater than the long-run growth rate