What is the expected holding period return

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Assume that firm XYZ is expected to pay a dividend per share of $1.79 next year and report earnings of $2.19 per share. If on a trailing 12-month basis the P/E for a comparable firm in the same industry is expected to be 10.7 and the price of the stock for firm A is currently 20.72, what is the expected holding period return (HPR) for an investor holding firm A's stock over the next twelve months?

Reference no: EM132001694

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