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Dividend just paid Rs 4, growth 10%, price Rs 88. Find Ke.

A5%
B15%
C10%
D14.5%
Answer & Solution
Correct answer: B. 15%
D1 = 4 x 1.10 = 4.4; 4.4/88 = 5%, and 5 + 10 = 15%.
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