Shane Purchased a Stock This Morning at a Cost of $13

question 78

Multiple Choice

Shane purchased a stock this morning at a cost of $13 a share. He expects to receive an annual dividend of $.27 a share next year. What will the price of the stock have to be one year from today if Shane is to earn an 8 percent rate of return on this investment?

• A)$12.38
• B)$12.60
• C)$12.88
• D)$13.77
• E)$14.28

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