Examveda
Examveda

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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