If a Stock Is Correctly Priced, Then You Know That

If a stock is correctly priced, then you know that ________.

A) the dividend payout ratio is optimal
B) the stock's required return is equal to the growth rate in earnings and dividends
C) the sum of the stock's expected capital gain and dividend yield is equal to the stock's required rate of return
D) the present value of growth opportunities is equal to the value of assets in place

Correct Answer:

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