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Question $5$

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Question text

Which of the following statements is most correct?

Question $5$Select one:

a$.$

Assume that the required rate of return on a given stock is $13$ percent. If the stock$$s dividend is growing at a constant rate of $5$ percent, its expected dividend yield is $5$ percent as well.

b$.$

The dividend yield on a stock is equal to the expected return less the expected capital gain.

c$.$

A stock$$s dividend yield can never exceed the expected growth rate.

d$.$

All of the answers above are correct.

e$.$

Answers b and c are correct.