Question: FinCorp Inc. purchased a stock for $50. It expects to receive a dividend of $5 in one year and to sell the stock immediately afterwards.

FinCorp Inc. purchased a stock for $50. It expects to receive a dividend of $5 in one year and to sell the stock immediately afterwards.
a. If the sale price is $75, what is the expected one-year holding period return?
b. If the sale price is $35, what is the expected one-year holding period return?
c. If the actual return was −4 percent, what was the sale price?
d. If the actual return was 15 percent, what was the sale price?

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