Q878
Constant growth rate is 6.5% and an expected dividend yield is 3.4% then an expected rate of return would be
A.
9.90%
AnswerB.
10.00%
C.
3.10%
D.
19.12%
Answer: Option A
Solution
Answer: Option A
Solution:
Expected rate of return = Constant growth rate + Expected dividend yield = 6.5% + 3.4% = 9.90%