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An expected dividend yield is 7 5 and an expected rate...

This question belongs to Commerce Financial Management
Financial Management
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An expected dividend yield is 7.5% and an expected rate of return is 15.5% then constant growth rate will be

Answer & Solution
Correct Answer: Option B
Constant growth rate = Expected rate of return - Expected dividend yield
= 15.5% - 7.5% = 8.00%
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