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Problem:

Jack is considering purchasing of ABC stock and would like to estimate its approximate yield if he holds it 3 years. The current price is 40.00 and he expects it would rise to 50.00 over the 3 year holding period. The expected dividend is 2.00 a year.

Note: Please explain comprehensively and give step by step solution.

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  • Category:- Basic Finance
  • Reference No.:- M91147727

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