alleryStart learning →A share is priced at Rs 80 with D1 Rs 4 and ke 11%. The implied growth rate is
A6%
B5%
C4%
D7%
Answer & Solution
Correct answer: A. 6%
From P = D1/(ke - g): 80 = 4/(0.11 - g), so ke - g = 0.05 and g = 6%.
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