Examveda
Examveda

Constant growth rate is 6.5% and an expected dividend yield is 3.4% then an expected rate of return would be

A. 9.90%

B. 10.00%

C. 3.10%

D. 19.12%

Answer: Option A

Solution(By Examveda Team)

Expected rate of return = Constant growth rate + Expected dividend yield
= 6.5% + 3.4% = 9.90%

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