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Super Computer Company's stock is selling for $110 per share today. It is expected thatat the end of one yearit will pay a dividend of

Super Computer Company's stock is selling for $110 per share today. It is expected thatat the end of one yearit will pay a dividend of $5 per share and then be sold for $114 per share. Calculate the expected rate of return for the shareholders.

Multiple Choice

  • 20 percent

  • 8.18 percent

  • 15 percent

  • 9.25 percent

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