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Super Computer Company's Stock Is Selling for $100 Per Share

Question 54

Multiple Choice

Super Computer Company's stock is selling for $100 per share today. It is expected that-at the end of one year-it will pay a dividend of $6 per share and then be sold for $114 per share. Calculate the expected rate of return for the shareholders.


A) 20 percent
B) 15 percent
C) 10 percent
D) 25 percent

Correct Answer:

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