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Deutschelander's Rate of Return. Deutschlander Motor Co. issues new stocks and promises to pay an annual dividend of 1.44. Financial forecasters predict that its market
Deutschelander's Rate of Return. Deutschlander Motor Co. issues new stocks and promises to pay an annual dividend of 1.44. Financial forecasters predict that its market share price will rise from 98 to 120 after one year. Investors expect German automobile firms to reap a rate of return of 11%. Supposing that you intend to hold the stock in your portfolio for one year should you invest in this equity? WICINO The shareholder return is % (Round to two decimal places.) (Select the best choice below.) A. The share's expected return of 21% far exceeds the required return of 11%. It is therefore a very good investment. B. The share's expected return of 23.92% far exceeds the required return of 11%. It is therefore a very bad investment. O C. The share's expected return of 23.92% far exceeds the required return of 11%. It is therefore a very good investment. D. The share's expected return of 21% far exceeds the required return of 11%. It is therefore a very bad investment
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