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)

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