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A Stock Is Selling for $20

Question 89

Multiple Choice

A stock is selling for $20.00 (P0) . The projected selling price one year from now (P1) is $22.50, and the projected dividend payment one year from now (D1) is $1.00. What is the expected return on an investment in the stock made today?


A) 12.50%
B) 5.00%
C) 15.56%
D) 17.50%

Correct Answer:

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