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Susan Investor has just bough a stock at $24 per share. The stock has a current dividend yield of 5% and a P/E ratio of
Susan Investor has just bough a stock at $24 per share. The stock has a current dividend yield of 5% and a P/E ratio of 8. She expects to be able to sell the stock at the end of four years for $40.25 per share. During this four year period the dividend per share is anticipated to remain unchanged. What is her expected annual rate of return over the four years?
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