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Currently a share of stock is paying a dividend (cash payout C) of $4.00 to...

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Question

Finance

Currently a share of stock is paying a dividend (cash payout

C)

of

$4.00

to be paid in exactly one year and has a known selling price in one year (P) of

$25.00.

The expected return (R) of similar assets is

8.0%,

and the current market price is $24.00. What is the total rate of return (R*) on this asset?

The total rate of return is

enter your response here%.

(Round

your response to one decimal

place.)

Part 2

Based on this information, you would expect the price of this stock to

Answer & Explanation Solved by verified expert
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