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.