Vidyalelo
Commerce · Q867

Financial Management

Graduate and Post Graduate · Commerce · question 867

Q867

An expected dividend yield is added into expected growth rate to calculate

A.
dividend return
B.
expected rate of return
Answer
C.
expected capital
D.
invested capita

Answer: Option B

Solution

Answer: Option B
Solution:
An expected dividend yield is added into expected growth rate to calculate expected rate of return. The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR).