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Management · Q873

Financial Management

Graduate and Post Graduate · Management · question 873

Q873

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

A.
less than expected yield on dividend
B.
greater than expected yield on dividend
C.
equal to expected yield on dividend
Answer
D.
equal to one

Answer: Option C

Solution

Answer: Option C
Solution:
In expected rate of return for constant growth, an expected total rate of return must be equal to expected yield on dividend.