15. Earl has one share of stock and one bond. The total value of the two securities is $1,312.80. The bond has a YTM of 12.78 percent, a coupon rate of 8.05 percent, and a face value of $1,000.00; pays semi-annual coupons

with the next one expected in 6 months, and matures in 3 years. The stock pays annual dividends that are expected to grow by 4.60 percent per year forever. The next dividend is expected to be $12.48 and paid in one

year. What is the expected return for the stock?

O 4.89% (plus or minus 0.03 percentage points)

O 7.52% (plus or minus 0.03 percentage points)

O 2.92% (plus or minus 0.03 percentage points)

O 8.59% (plus or minus 0.03 percentage points)

O None of the above is within 0.03 percentage points of the correct answer