How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask SteveS Your Own Question
SteveS, MBA
Category: Homework
Satisfied Customers: 453
Experience:  MBA from Top 5 US Business School, Tutoring Experience for Over Two Years
Type Your Homework Question Here...
SteveS is online now
A new question is answered every 9 seconds

Which of the following statements is CORRECT, assuming stocks

Resolved Question:

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.
Submitted: 7 years ago.
Category: Homework
Expert:  SteveS replied 7 years ago.

You need to spend $3 to view this post. Add Funds to your account and buy credits.
SteveS and 3 other Homework Specialists are ready to help you