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Constant growth rate is 7 2 and an expected rate of...

This question belongs to Commerce Financial Management
Financial Management
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Constant growth rate is 7.2% and an expected rate of return is 12.5% then expected dividend yield will be

Answer & Solution
Correct Answer: Option A
Expected dividend yield = Expected rate of return - Constant growth rate
= 12.5% - 7.2% = 5.30%
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