Q897
In expected rate of return for constant growth, dividends are expected to grow but with the
A.
constant rate
AnswerB.
variable rate
C.
yielding rate
D.
returning yield
Answer: Option A
Solution
Answer: Option A
Solution:
In expected rate of return for constant growth, dividends are expected to grow but with the constant rate. The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR).