-3.40%
3.40%
13.40%
-13.40%
Answer is Wrong!
Answer is Right!
The correct answer is C. 13.40%.
The formula for calculating the expected rate of return is:
Expected rate of return = Dividend yield + Constant growth rate
In this case, the dividend yield is 5.4% and the constant growth rate is 8%. Therefore, the expected rate of return is:
Expected rate
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