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    kflojo2's Avatar
    kflojo2 Posts: 1, Reputation: 1
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    #1

    Aug 5, 2009, 07:27 AM
    Stock growth and dividends
    If a stock's dividend is expected to grow at a constant rate of 5 percent a year, which is true:

    Its expected return on stock is 5%
    The dividend yield is 5%
    The stock price one year from now is expected to be 5% higher
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
    Senior Member
    		  
    #2

    Aug 5, 2009, 09:05 AM
    One of those is true. Now, review the forum's Homework Help rules, and let us know where you're unsure of your answer. We'll be glad to help you out.
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