A stocks dividend is expected to grow at a constant rate of

A stock\'s dividend is expected to grow at a constant rate of 6 percent a year. Which of the following statements is most correct? The stock\'s price is expected to grow at 6 percent a year The stock\'s dividend yield is 6 percent. The stock\'s price one year from now is expected to be 4 percent higher The expected return on the stock is 6 percent a year, re Save

Solution

the correct answer is

The stock price one year from now is expected to be 4 percent higher