Vidyalelo
Commerce · Q901

Financial Management

Graduate and Post Graduate · Commerce · question 901

Q901

An expected rate of return is subtracted from capital gains yield to calculate

A.
expected dividend yield
Answer
B.
capital earning
C.
casual growth
D.
specialized growth rate

Answer: Option A

Solution

Answer: Option A
Solution:
An expected rate of return is subtracted from capital gains yield to calculate expected dividend yield. The dividend yield is the ratio of a company's annual dividend compared to its share price.