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An analyst projects D1 Rs 2, g 4% perpetually, k 10%. With market price Rs 30, the implied dividend yield is closest to:
A10.0%
B4.0%
C6.7%
D6.0%
Answer & Solution
Correct answer: C. 6.7%
1. Identify what the question asks: this concept maps to dividendyield (§1.1).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (C).
_Source: ICAI BoS CA Final Paper 2, Ch 4 "Security Analysis"_
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