What rate of return would the investor realize

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A stock is expected to pay $5.75 per year in dividends for each of the next five years and be trading at a price of $110 at the end of five years. What rate of return would the investor realize over the next five years if his expectations (regarding future dividends and price) were realized had he paid a price of $101.74 a share for the stock? a. 6 percent b. 8 percent c. 12 percent d. 7 percent

Reference no: EM131303975

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