Problem 9-2 The Rapscallion Company's stock is selling for $43.75. Dave Jones has done some research on the firm and its industry, and he thinks it will pay dividends of $4 next year and $8 the following year. After those two years, Dave thinks its market price will peak at $50. His strategy is to buy now, hold for the two years, and then sell at the peak price. (Hint: Approximate the answer by extending equation for computing expected return to two years and taking half of the result.) Find the return on Dave's prospective investment. Do not round intermediate calculations. Round the answer to two decimal places. % If Dave is confident about his financial projections but requires a return of 25% before investing in stocks like Rapscallion, should he invest in this opportunity? No