Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a stock with a constant dividend growth rate of 5%

A stock with a constant dividend growth rate of 5% is expected to make a...

70.2K

Verified Solution

Question

Finance

A stock with a constant dividend growth rate of 5% is expected to make a $2 dividend in one year. If you require a 12% return on your investment, which of the following statements is INCORRECT?

A. The current stock price is $28.57.

B. The dividend yield is 7%.

C. The capital gains yield is 12%.

D. The stock price will grow at an annual 5%.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

In 2014, city officials in Flint, Michigan switched their drinking water supply from Detroit's system...

Calculus
1.2K views

The functions f, g, and h are defined as follows.f(x) = ?11+|6x| g(x) = x...

Psychology
1.2K views

History of world civilization: What does the Tao-te Ching influence, and reveal about the Chinese civilization?...

Physics
1.2K views

A block of mass m is connected rigidly with a smooth wedge plank by a...

Basic Math
1.2K views

The shadow of a vertical tower is 74.0 ft long when the angle of elevation...

Basic Math
1.2K views

A repair bill for a car is $648.45. The parts cost $265.95. The labor cost...

Basic Math
1.2K views

Use the simplex method to maximize f= 4x + 4y + z under the constraintsx...

Algebra
1.2K views

Solve 3 sin x cos x in radians to two decimal places for 0 x...

Accounting
1.2K views

List five statutory requirements for the preparations of financial reports.

Accounting
1.2K views

Exercise 10-9 Straight Line l: Amortization Exercise 10-9 Straight-Line:...

Accounting
1.2K views

How to compute a break even analysis in telemedicine if the investment is 201,846and the...

Finance
1.2K views

Problem 21-12 BlackScholes model Use the BlackScholes formula to value the following options: a. A...