What is the expected annual return for stock

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Demarius owns investment A and 1 share of stock B. The total value of his holdings is 2,619.1 dollars. Investment A is expected to pay annual cash flows to Demarius of 350 dollars per year with the first annual cash flow expected later today and the last annual cash flow expected in 7 years from today. Investment A has an expected annual return of 7.59 percent. Stock B is expected to pay an annual dividend of 48.84 dollars forever with the next dividend expected in 1 year. What is the expected annual return for stock B? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Reference no: EM131055801

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