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

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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%.

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