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QUESTION 7 Cochran 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 7 Cochran 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 $16.50 each year forever, the stock's expected return is 14.20 percent per year, and its next dividend is expected in 1 year. Investment A has an expected return of Xand is expected to pay $76.00 per year for a finite 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. 13.72M (plus or minus.03 percentage points) b. 17.03% (plus or minus .03 percentage points) c.12.29% (plus or minus 03 percentage points) d.9.69(plus or minus .03 percentage points) e. None of the above is within .03 percentage points of the correct

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