Q905
An expected dividend yield is 7.5% and an expected rate of return is 15.5% then constant growth rate will be
A.
22.00%
B.
8.00%
AnswerC.
23.00%
D.
2.06%
Answer: Option B
Solution
Answer: Option B
Solution:
Constant growth rate = Expected rate of return - Expected dividend yield = 15.5% - 7.5% = 8.00%