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What is the return you expect

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Reference no: EM132081300

Assume you are interested in investing in company A's stock which is trading at $34.46 now. This company's last paid dividend was $2.75. The dividend is expected to be $3.25 next year, $4.15 in year 2, $5.15 in year 3 and $6.25 in year 4. You expect to sell this company for $53.25 at the end of 4 years from now. What is the return you expect to make from this investment if you buy it now?

  • 11.36%
  • 15.85%
  • None of the answers is correct
  • 7.58%
  • 22.68%

Reference no: EM132081300

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