= 5

= 12

Q3. You are considering two investment alternatives. The first is a stock that pays quarterly dividends of Sa/4 per share and is trading at $28.92 per share; you expect to sell the stock in six months for $34.11. The second is a stock that pays quarterly dividends of $B/5 per share and is trading at $31.12 per share; you expect to sell the stock in one year for $32.32. Which stock will provide the better annualized holding period return? a. The 1-year HPR for the first stock is 43.22 %. b. The 1-year HPR for the second stock is 11.18 %