Examveda
Examveda

Constant growth rate is 9.5% and an expected rate of return is 13.5% then expected dividend yield would be

A. 23.00%

B. 1.42%

C. 4.00%

D. 14.50%

Answer: Option C

Solution(By Examveda Team)

Expected dividend yield = Expected rate of return - Constant growth rate
= 13 5% - 9.5% = 4.00%

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