Question: The required return on a stock is equal to which one of the following if the dividend on the stock decreases by a constant percent

The required return on a stock is equal to which one of the following if the dividend on the stock decreases by a constant percent per year?

A.

. (P0/D1) - g

B.

(D1/P0)/g

C.

Dividend yield - Capital gains yield

D.

Dividend yield + Capital gains yield

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