You are considering two investment alternatives. The first is a stock that pays quarterly dividends of $0.25

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You are considering two investment alternatives. The first is a stock that pays quarterly dividends of $0.25 per share and is trading at $20 per share; you expect to sell the stock in six months for $24. The second is a stock that pays quarterly dividends of $0.50 per share and is trading at $27 per share; you expect to sell the stock in one year for $30. Which stock will provide the better annualized holding period return?

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Fundamentals Of Investing

ISBN: 9780134083308

13th Edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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