The expected rate of return on the common stock of Northwest Corporation 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 statements is most correct?
A) The stock's dividend yield is 8 percent.
B) The stock's dividend yield is 7 percent.
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.

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The Answer of The expected rate of return on the common stock of Northwest Corporation 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 statements is most correct?
A) The stock's dividend yield is 8 percent.
B) The stock's dividend yield is 7 percent.
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.

The Expected Rate of Return on the Common Stock of Northwest