17) Ivonne has bought shares of RIO, Inc. stock for $25.00 per share. At the end...

Question

Question

Answer 1

Answer #1

Ans: Price at the end of the year = P1 = $ 28.75

Price at the beginning of the year = P0 = $ 25.00

Dividend (D1) = $ 1

Required rate of return = ( P1 - P0 + D1 ) / P0

= ( $ 28.75 - $ 25 + $ 1) / $ 25

= $ 4.75 / $ 25

= 19 %

Option C 19 %

Answer 2

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