The Expected Rate of Return or the Cost of Equity

question 57

Multiple Choice

The expected rate of return or the cost of equity capital is estimated as follows:

• A) Dividend yield - expected rate of growth in dividends
• B) Dividend yield + expected rate of growth in dividends
• C) Dividend yield/expected rate of growth in dividends
• D) (Dividend yield) * (expected rate of growth in dividends)

---

Definitions:

Young Adulthood

A developmental stage typically covering the period from the late teens through the twenties, characterized by exploration, independence, and the establishment of one's personal and professional identity.

Maturation

The process of becoming mature; the process of development in organisms or organizational structures.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, often influencing behavior, thoughts, and feelings.

Temperament

Innate aspects of an individual's personality, such as sensitivity, moods, and activity levels, that are evident from a young age.