Solution-Calculate your expected total return

Calculate your expected total return

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Reference no: EM13887102

You buy 100 shares in Bondex Corporation for $ 25 a share. Each share pays $ 1 in dividends every three months. You have a five year holding period and expect to invest all dividends received in the first two years at 6 percent, and all dividends received the next three years at 9 percent. Calculate your expected total return (as a percentage yield) if you can sell the shares at $ 30 each after five years.

Reference no: EM13887102

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Calculate your expected total return

Reference no: EM13887102

Reference no: EM13887102

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