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Corporate Finance · Quiz 1 · 15 Mar 2026 · January 2026 term

Question 4: A company’s stock is currently trading at Rs 500. It is e…

Question 4

+4 marksOne correct option

A company’s stock is currently trading at Rs 500. It is expected to pay a dividend of Rs 25 next year. If the required rate of return is 12% and the dividend is expected to grow at a constant rate, what is the implied growth rate according to the Gordon Growth Model?

  1. A

    5%

  2. B

    6%

  3. C

    7%

  4. D

    8%

Show answer

Correct answer

  • C

    7%

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Question 4 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 15 Mar 2026, in the January 2026 term (Corporate Finance 15 Mar 26). It carries 4 marks.

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