FinCorp Inc. purchased a stock for $50. It expects to hold the stock for two years, receive a dividend of $1.50 at the e

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answerhappygod
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FinCorp Inc. purchased a stock for $50. It expects to hold the stock for two years, receive a dividend of $1.50 at the e

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FinCorp Inc. purchased a stock for $50. It expects to hold thestock for two years, receive a dividend of $1.50 at the end of eachyear, and sell the stock immediately after receiving the seconddividend. Assume dividends are held in a zero-interest savingsaccount. If the sale price is $75, what is the expected annualreturn? If the sale price is $35, what is the expected annualreturn? If the actual return was −4 percent, what was the saleprice? If the actual return was 15 percent, what was the saleprice?
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