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 2,498.24 dollars. Investment A is expected to pay annual cash flows to Demarius of 370 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 11.91 percent. Stock B is expected to pay an annual dividend of 48.7 dollars forever with the next dividend expected in 1 year. What is the expected annual return for stock B?

Reference no: EM131186395

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