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Management · Q843

Financial Management

Graduate and Post Graduate · Management · question 843

Q843

In expected rate of return for constant growth, capital gains is divided by capital gains yield to calculate

A.
returning price
B.
ending price
C.
beginning price
Answer
D.
regular price

Answer: Option C

Solution

Answer: Option C
Solution:
In expected rate of return for constant growth, capital gains is divided by capital gains yield to calculate beginning price. Beginning market value (BMV) is the valuation at which a property or investment should exchange at the date of origination, and then at the beginning of each subsequent period.