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Business, 22.07.2019 23:10 cutie22327

Which of the following statements is correct, assuming stocks are in equilibrium?
the dividend yield on a constant growth stock must equal its expected total return minus its expected capital gains yield. assume that the required return on a given stock is 13%. if the stock’s dividend is growing at a constant rate of 5%, its expected dividend yield is 5% as well. a stock’s dividend yield can never exceed its expected growth rate. a required condition for one to use the constant growth model is that the stock’s expected growth rate exceeds its required rate of return. other things held constant, the higher a company’s beta coefficient, the lower its required rate of return.

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Which of the following statements is correct, assuming stocks are in equilibrium?
the dividen...
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