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Assume a stock is initially priced at $40, and pays an annual $2 dividend. An investor uses cash to pay $25 a share and borrows

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Assume a stock is initially priced at $40, and pays an annual $2 dividend. An investor uses cash to pay $25 a share and borrows the remaining funds at a 12 percent annual interest. What is the holding period return if the investor sells the stock for $50 at the end of one year? a 25% b. 33% C. 40%

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