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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
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