Vinge Inc’s stock is in equilibrium and the company’s dividends are expected to

grow at a constant rate of 7% each year. Which of the following statements are correct? More than one answer is possible.

Question 3 options:

A)The company’s dividend yield is 7%.

B)Vinge’s stock price is expected to increase by 7% each year.

C)The expected rate of return on Vinge’s stock is 7%.

D)The capital gains yield of Vinge’s stock is 7%.

E)Vinge’s stock price should drop next year

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