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You are considering two investment alternatives. The first is a stock that pays quarterly dividends of $0.34 per share and is trading at $22.62 pershare;
You are considering two investment alternatives. The first is a stock that pays quarterly dividends of $0.34 per share and is trading at $22.62 pershare; you expect to sell the stock in six months for $25.35. The second is a stock that pays quarterly dividends of $0.67 per share and is trading at $32.68 pershare; you expect to sell the stock in one year for $34.31. Which stock will provide the better annualized holding periodreturn?
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