Constant growth rate is 7.2% and an expected rate of return is 12.5% then expected dividend yield will be
A. 5.30%
B. 19.70%
C. -5.30%
D. 17.36%
Answer: Option A
Solution (By Examveda Team)
Expected dividend yield = Expected rate of return - Constant growth rate= 12.5% - 7.2% = 5.30%
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