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Delta owns investment A and 1 share of stock B. The total value of his holdings is $350. Stock B is expected to pay an
Delta owns investment A and 1 share of stock B. The total value of his holdings is $350. Stock B is expected to pay an annual dividend of $17 each year forever, the stock's expected return is 16 percent per year, and its next dividend is expected in 1 year. Investment A has an expected return of X and is expected to pay $60 per year for a finite number of years such that its first annual payment is expected later today and its last annual payment is expected in 5 years from today. What is X, the expected return for investment A? A. -1.02% B. Answer is not listed or is not possible 16.00% D. 11.61% E. 18.93% ou w
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