Constant growth rate is 8% and an expected dividend yield is 5.4% then expected rate of return would be

-3.40%
3.40%
13.40%
-13.40%

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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of return = 5.4% + 8% = 13.40%

Option A is incorrect because it is the negative of the expected rate of return. Option B is incorrect because it is the dividend yield. Option D is incorrect because it is the negative of the dividend yield.

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