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Management · Q846

Financial Management

Graduate and Post Graduate · Management · question 846

Q846

In expected rate of return for constant growth, an expected dividend yield must be

A.
functional decreasing
B.
constant
Answer
C.
continuously growing
D.
functional increasing

Answer: Option B

Solution

Answer: Option B
Solution:
In expected rate of return for constant growth, an expected dividend yield must be constant. The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR).