Question

An expected dividend yield is 5.5% and the expected rate of return is 11.5% then the constant growth rate would be

a.

0.0209

b.

−$6%

c.

0.175

d.

0.06

Answer: (d).0.06

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Q. An expected dividend yield is 5.5% and the expected rate of return is 11.5% then the constant growth rate would be

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