pose that you have estimated the following model for a broad cross section of stocks: r(t) = 3% + 2*Dividend_yield(t-1) - 1*ln(Market_capitalization(t-1)) + 3*Book/Market(t-1) Company AC's stock currently is priced such that it offers a 3% dividend yield, has a ln(Market Cap) of 1.6, and a book/market ratio of 1. According to your model, what is AC's expected stock price return for next year? Group of answer choices 3.8% 5.8% 6.5% 10.4% 13.6%

The constant growth valuation formula has dividends in the numerator. Dividends are divided by the difference between the required return and dividend growth rate as follows: Po = D₁ (Is - g) Which of the following statements best describes how a change in a firm's stock price would affect a stock's capital gains yield? The capital gains yield on a stock that the investor already owns has an inverse relationship with the firm's expected future stock price. The capital gains yield on a stock that the investor already owns has a direct relationship with the firm's expected future stock price. Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $2.45 at the end of the year. Its dividend is expected to grow at a constant rate of 6.50% per year. If Walter's stock currently trades for $29.00 per share, what is the expected rate of return? 713.36% 657.93% 1,104.83% 14.95% Which of the following conditions must hold true for the constant growth valuation…

the last question, please.

A stock is selling for $50 in the market. The required rate of return is 9%. The most recent dividend paid is D0 = $3.0 and dividends are expected to grow at a constant rate g. What’s the expected capital gain for this stock?