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Commerce · Q865

Financial Management

Graduate and Post Graduate · Commerce · question 865

Q865

In expected rate of return for constant growth, expected total rate of return is equal to

A.
buying pricing
B.
dividend yield
Answer
C.
rate of return
D.
selling pricing

Answer: Option B

Solution

Answer: Option B
Solution:
In expected rate of return for constant growth, expected total rate of return is equal to dividend yield. The dividend yield is the ratio of a company's annual dividend compared to its share price.