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ST12 Find rate of return given lump-sum cash Hows A stock you are buying today promises no dividends for a long time. In exactly 10 years you expect the stock will pay its first annual dividend of $1.90. At that time, you also believe that the stock could be sold for $41.00. If today you can buy the stock for $15.95, what is the expected annual rate of return on the stock investment? ANSWER: C a. 11.4% b. 9.5% c. 10.4% d. 7.8% e. 8.6%