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If a stock's dividend is expected to grow at a constant rate of 6.5% (g) a year, which of the following statements is CORRECT? Assume that the stock is in equilibrium.

The stock's price one year from now is expected to be 6.5% above the current price.

The price of the stock is expected to decline in the future.

The stock's required return must be equal to or less than 6.5%.

The stock's dividend yield is 6.5%.

The expected return on the stock is 6.5% a year.

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Financial Management, Finance

Category:- Financial Management
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