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You plan to buy a dividend paying stock with no growth rate. The most recent dividend paid by the stock is $3.92, and the market
You plan to buy a dividend paying stock with no growth rate. The most recent dividend paid by the stock is $3.92, and the market is using a discount rate of 15% to price the stock. If, after one year, the discount rate remains unchanged, what is the dollar return on your investment that you will realize by selling the stock?
$2.88
$3.23
$4.13
$3.92
none of the above
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