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You are considering two investment alternatives. The first is a stock that pays quarterly dividends of $0.37 per share and is trading at $23.63 per
You are considering two investment alternatives. The first is a stock that pays quarterly dividends of $0.37 per share and is trading at $23.63 per share; you expect to sell the stock in six months for $27.32. The second is a stock that pays quarterly dividends of $0.79 per share and is trading at $37.31 per share; you expect to sell the stock in one year for $40.42. Which stock will provide the better annualized holding period return? The 1-year HPR for the first stock is %. (Enter as a percentage and round to two decimal places.) Enter your answer in the answer box and then click Check Answer. ? 2. parts remaining Clear All Check Answer You invest $4,959 in stock and receive $49, $56, $56, and $49 in dividends over the following 4 years. At the end of the 4 years, you sell the stock for $6,100. What was the IRR on this investment? The IRR on this investment is %. (Round to the nearest whole percent.) Enter your answer in the answer box and then click Check Answer. ? All parts showing Clear All Check
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