18. An expected dividend yield is 5.5% and expected rate of return is 11.5% then constant growth rate would be

A) 2.09%
B) -6.00%
C) 17.50%
D) 6.00%
✅ ANSWER: D
Constant growth rate = Expected rate of return – Expected dividend yield
= 11.5% – 5.5% = 6.00%

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