What is expected rate of return from the investment

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Problem 1: "A" is considering buying a property that will provide a level perpetuity income stream of $14,000 per year forever. The purchase price of the property is $300,000. What is her expected rate of return from the investment? Show your calculations.

(a) 4.00%

(b) 4.67%

(c) 5.33%

(d) 8.00%

Reference no: EM132936868

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