You are considering buying a particular stock. You expect to own the stock for the next four years. The stock's current market price is $24.50, and you expect to sell it for $55 in four years. You also expect the stock to pay an annual dividend of $1.25 at the end of year 1, $1.35 at the end of year 2, $1.45 at the end of year 3, and $1.55 at the end of year 4. What is your expected return from this? investment? (Explain how you did this.)

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Heres how we can calculate the expected return Calculate the divi... View the full answer