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Deutschlander Motor Co. issues new stocks and promises to pay an annual dividend of 1.5. Financial forecasters predict that its market share price will rise

Deutschlander Motor Co. issues new stocks and promises to pay an annual dividend of €1.5. Financial forecasters predict that its market share price will rise from €100 to €120 after one year. Investors expect German automobile firms to reap a rate of return of 12%. 

Supposing that you intend to hold the stock in your portfolio for one year, should you invest in this equity?


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