The Company expects to announce their annual dividend of $3.92 next year. The company promises to increase its dividends at 4% perpetually. You make an offer to purchase the stock so that you earn 13.4%. You expect to receive the dividend and immediately sell the stock after one year when interest rates decrease to 12%. How much would have been your annual rate of return from the one-year investment?

Ihe Company expects to announce their annual dividend of $3.92 next yeat. The company promises to increase its dividends at 4% perpetually. You make an offer to purchase the stock so that you earn 13,4%. You expect to receive the dividend and immediately sell the stock atter one year when Interest rates decrease to 12%. How much would have been your annual rate of return from the one-year investment