Constant growth rate is 8% and an expected dividend yield is 5.4% then expected rate of return would be
A. -3.40%
B. 3.40%
C. 13.40%
D. -13.40%
Answer: Option C
Solution (By Examveda Team)
Expected rate of return = Constant growth rate + Expected dividend yield= 8% + 5.4% = 13.40%.

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