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Consider three investors: a. Mr. Single invests for one year. b. Ms. Double invests for two years. c. Mrs. Triple invests for three years. Company
Consider three investors: a. Mr. Single invests for one year. b. Ms. Double invests for two years. c. Mrs. Triple invests for three years. Company Z's earnings and dividends per share are expected to grow indefinitely by 4% a year, the next year's dividend is $8 and the market capitalization rate is 6%. Assume each invests in company Z. What is the expected rate of return for each of these investors? (Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number.)
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