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Calculate the Expected Capital Gain on a Share That Costs

Question 44

Multiple Choice

Calculate the expected capital gain on a share that costs $1 and pays a 7c dividend if the share is sold in two years' time.Assume that the required rate of return for such a share is 7% p.a.


A) Loss of 12.7c.
B) Gain of 14c.
C) None of the given options.
D) Gain of 14.49c.

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