An analyst reports the intrinsic value of Pioneer company as $101. The company is assumed...
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An analyst reports the intrinsic value of Pioneer company as $101. The company is assumed to grow at a rate of 7% per year forever. The current market price is $101 and the company has just paid a dividend of $4. If the analyst expects the market price to be equal to the intrinsic value 1 year from now, what is the expected 1-year holding period return on Pioneer company (approximately)?
A. 11.24%
B. 18.69%
C. 25.56%
D. 12.28%
An analyst reports the intrinsic value of Pioneer company as $101. The company is assumed to grow at a rate of 7% per year forever. The current market price is $101 and the company has just paid a dividend of $4. If the analyst expects the market price to be equal to the intrinsic value 1 year from now, what is the expected 1-year holding period return on Pioneer company (approximately)?
A. 11.24%
B. 18.69%
C. 25.56%
D. 12.28%
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