An expected dividend yield is 5.5% and expected rate of return is 11.5% then constant growth rate would be
A. 2.09%
B. -6.00%
C. 17.50%
D. 6.00%
Answer: Option D
Solution (By Examveda Team)
Constant growth rate = Expected rate of return - Expected dividend yield= 11.5% - 5.5% = 6.00%
Join The Discussion