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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

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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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If the first stock is held for 6 months it will earn 2 quart…View the full answer


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Jonas Araujo
I have recently received the degree of PhD. In Physics by the Universidade Federal do Maranhão after spending a term in Durham University, as I have been awarded a scholarship from a Brazilian mobility program. During my PhD. I have performed research mainly in Theoretical Physics and published works in distinguished Journals (check my ORCID: https://orcid.org/0000-0002-4324-1184). During my BSc. I have been awarded a scholarship to study for a year in the University of Evansville, where I have worked in detection-analysis of photon correlations in the the Photonics Laboratory. There I was a tutor in Electromagnetism, Classical Mechanics and Calculus for most of that year (2012). I am very dedicated, honest and a fast learner, but most of all, I value a job well done.
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Fundamentals Of Investing

Fundamentals Of Investing

ISBN: 9780134083308

13th Edition

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

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Question Posted: December 15, 2016 09:23:22
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