Super Computer Company’s stock is selling for $100 per share today. It is expected that this stock will pay a dividend of 5 dollars per share, and then be sold for $120 per share at the end of one year. Calculate the expected rate of return for Super Computer Company ‘s stock.

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Super Computer Company’s stock is selling for $100 per share today.  It is expected that this stock will pay a dividend of 5 dollars per share, and then be sold for $120 per share at the end of one year.  Calculate the expected rate of return for Super Computer Company ‘s stock.

 

  1. A) 20%
  2. B) 25%
  3. C) 10%
  4. D) 15%
  5. E) None of the above

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