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Calculate the actual return on duncan

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Reference no: EM132652609

Question - The Duncan Company's stock is currently selling for $15.  People generally expect its price to rise to $18 by the end of next year.  They also expect that it will pay a dividend of $.50 per share during the year. 

Required -

a. What is the expected return on an investment in Duncan's stock? 

b. Recalculate the expected return if next year's price is forecast to be only $17 and the dividend $.25. 

c. Calculate the actual return on Duncan if at the end of the year the price turns out to be $13 and the dividend actually paid was just $.10.

Reference no: EM132652609

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