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%
AnswerD.
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%