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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