alleryStart learning →Last dividend Rs 10, growing 5%, price Rs 150. Dividend-growth Ke?
A7%
B13%
C10%
D12%
Answer & Solution
Correct answer: D. 12%
D1 = 10 x 1.05 = 10.5, and 10.5/150 = 7%, so Ke = 7 + 5 = 12%.
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