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QUESTION 4 XYZ owns investment A and 1 share of stock B. The total value of his holdings is $490. Stock B is expected to

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QUESTION 4 XYZ owns investment A and 1 share of stock B. The total value of his holdings is $490. Stock B is expected to pay an annual dividend of $15.60 each year forever, the stock's expected return is 12.40 percent per year, and its next dividend is expected in 1 year. Investment has an expected return of X and is expected to pay $76.00 per year for afinite number of years such that its first annual payment is expected later today and its last annual payment is expected in 7 years from today. What is the expected return for investment A? a. 14.93% (plus or minus 03 percentage points) b.18.18% (plus or minus 03 percentage points) O c. 13.04% (plus or minus .03 percentage points) d. 10.48% (plus or minus.03 percentage points) O None of the above is within 3 percentage points of the correct answer ETIAMS

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