Stock dividend is expected to grow at constant rate

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A stock’s dividend is expected to grow at a constant rate of 5 percent a year. Which of the following statements is most correct?

The expected return on the stock is 5 percent a year.

The stock’s dividend yield is 5 percent.

The stock’s price one year from now is expected to be 5 percent higher.

All of the statements above are correct.

Reference no: EM131063167

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