Vidyalelo
Commerce · Q269

Financial Management

Graduate and Post Graduate · Commerce · question 269

Q269

Which of the following is / are assumption behind the realized yield approach?

A.
The yield earned by investors has been, on average, in conformity with their expectations
B.
The dividends will continue growing at a constant rate forever
C.
The market price will continue growing at a constant rate forever
D.
Both a and b
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
The yield earned by investors has been, on average, in conformity with their expectations. The dividends will continue growing at a constant rate forever are assumption behind the realized yield approach.