P4.10 You are considering two investment alternatives. The first is a share that pays quarterly dividends of

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P4.10 You are considering two investment alternatives. The first is a share that pays quarterly dividends of $0.50 per share and is trading at $25 per share; you expect to sell in six months for

$27. The second is a share that pays quarterly dividends of $0.60 per share and is trading at $27 per share; you expect to sell in one year for $30. Which share will provide the better annualised holding period return?

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Fundamentals Of Investing

ISBN: 9781442532885

3rd Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott Smart, Roger Juchau, Donald Ross, Sue Wright

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