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The common stock of Rager is currently selling for $25. The stock recently paid a dividend of $2.50. You feel that the stock will increase
The common stock of Rager is currently selling for $25. The stock recently paid a dividend of $2.50. You feel that the stock will increase dividends by 6% next year and each year thereafter and the market return for this type of stock would be 14%. Your plan is to hold the stock for one years and sell it for a profit (you hope). What is the holding period return?
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