Question
Karriker co. just paid 10$ dividend on earning per share of $25. the current P/E ratio is 14. you buy the stock today. you expect
Karriker co. just paid 10$ dividend on earning per share of $25. the current P/E ratio is 14. you buy the stock today. you expect the following in the next 12 months:
Dividends and earnings will grow by 10%.
the P/E ratio will be 22.
12 months later it turns out that your expectations were correct. You receive the dividend and sell the stock. What was the total return % for the 12 month period? (show % in decimal)
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