The expected rate of return on the common stock of NW Corp. is 14
percent. The stock?s dividend is expected to grow at a constant rate
of 8 percent a year. The stock currently sells for $50 a share. Which
of the following statement is most correct?

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Clarification of Question by stressedout-ga on 11 Mar 2006 12:33 PST

The statements are as follows:

A.      the stocks dividend yield is 8%
B.	the stocks dividend yield is 7%
C.	the current dividend per share is $4.00
D.	the stock price is expected to be $54 a share in one year
E.	the stock price is expected to be $57 a share in one year

Duh?
Stressedout-ga, we are not supposed to answer homework assignments,
even real easy ones like this.
You might read the FAQs and save your money  - and learn the stuff in the book.