Vidyalelo
Commerce · Q833

Financial Management

Graduate and Post Graduate · Commerce · question 833

Q833

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%
Answer
D.
14.50%

Answer: Option C

Solution

Answer: Option C
Solution:
Expected dividend yield = Expected rate of return - Constant growth rate
= 13 5% - 9.5% = 4.00%