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A stock costs $80 and pays a $4 dividend each year for three years.

a) If an investor buys the stock for $80 and expects to sell it for $100 after three years, what is the anticipated annual rate of return?

b) What would be the rate of return if the purchase price were $60?

c) What would be the rate of return if the dividend were $1 annually and the purchase price were $80 and the sale prices were $100?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92747933

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