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You are considering two investment alternatives. The first is a stock that pays quarterly dividends of $0.25 per share and is trading at $20 per

You are considering two investment alternatives. The first is a stock that pays quarterly

dividends of $0.25 per share and is trading at $20 per share; you expect to sell the stock

in six months for $24. The second is a stock that pays quarterly dividends of $0.50 per

share and is trading at $27 per share; you expect to sell the stock in one year for $30.

Which stock will provide the better annualized holding period return?

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