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Stock A has an earnings of $5 per share at year 1. The interest rate is 20%, and the return on equity is 25%. If

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Stock A has an earnings of $5 per share at year 1. The interest rate is 20%, and the return on equity is 25%. If there is no plow-back and you like to buy stock A now and hold it for two years, what is the expected return for your investment ? Select one: a. 10.00% b. 20.00% c. 25.00% d. 40.00% e, none of the above

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