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John wants to earn a total of 10% on his investments. He recently purchased shares of ABC stock at a price of $20 a share.
John wants to earn a total of 10% on his investments. He recently purchased shares of ABC stock at a price of $20 a share. The stock pays a $1 a year dividend (D1 = $1). The price of ABC stock needs to _____ if John is to achieve his 10% rate of return.
A. increase by 15%
B. increase by 10%
C. decrease by 5%
D. increase by 5%
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