Examveda
Examveda

An expected dividend yield is 7.5% and an expected rate of return is 15.5% then constant growth rate will be

A. 22.00%

B. 8.00%

C. 23.00%

D. 2.06%

Answer: Option B

Solution(By Examveda Team)

Constant growth rate = Expected rate of return - Expected dividend yield
= 15.5% - 7.5% = 8.00%

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