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Commerce · Q97

Miscellaneous in Commerce

Graduate and Post Graduate · Commerce · question 97

Q97

The current market price of a company's share is Rs. 90 and the expected dividend per share next year is Rs. 4.5. If the dividend is expected to grow at a constant rate of 8%, the shareholder's required rate of return will be

A.
8%
B.
5%
C.
20%
D.
13%
Answer

Answer: Option D

Solution

Answer: Option D
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