What is rate of return on this investment

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Reference no: EM131590703

JBT company just paid a dividend of $2. Dividends will grow at a constant rate of 2% forever, and the required return for the company is 14%. Suppose you buy the stock at these conditions today, but one year later investors suddenly receive new information and now expect the growth rate in the stock to be 5%. What is your rate of return on this investment if you sell the shares one year later?

Reference no: EM131590703

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