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You are considering two investment alternatives. The first is a stock that pays quarterly dividends of $0.41per share and is trading at $23.43 per share;
You are considering two investment alternatives. The first is a stock that pays quarterly dividends of $0.41per share and is trading at $23.43 per share; you expect to sell the stock in six months for $27.25. The second is a stock that pays quarterly dividends of $0.67 per share and is trading at $36.66 per share; you expect to sell the stock in one year for $39.77. Which stock will provide the better annualized holding period return?
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