TSC, Inc. sells for $26 and pays an annual per share dividend of $1.30, which you expect

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TSC, Inc. sells for $26 and pays an annual per share dividend of $1.30, which you expect to grow at 12 percent. What is your expected return on this stock? What would be the expected return if the price were $40 a share?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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