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An investor has examined Target stock and makes the following predictions for the future: YEAR 1 2 3 4 DIVIDEND $1.20 $1.38 $1.59 $1.76 The

An investor has examined Target stock and makes the following predictions for the future:

YEAR 1 2 3 4
DIVIDEND $1.20 $1.38 $1.59 $1.76

The investor believes the selling price in four years will be $86.07. The price of Target stock this morning is $71.43. What return will the investor earn if he is correct about future dividends and selling price?

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