Stock X has the following data. Assuming the stock market is efficient and the stock is in equilibrium, which of the following statements is CORRECT? Expected dividend, D1$3.00 Current Price, P0$50 Expected constant growth rate 6.0%?
A. The stock's required return is 10%.
B. The stock's expected dividend yield and growth rate are equal.
C. The stock's expected dividend yield is 5%.
D. The stock's expected capital gains yield is 5%.
E. The stock's expected price 10 years from now is $100.00.
Answer: B
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