Determining the rate-of-return

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Company ABC pays an annual dividend of 2 per share, on a quarterly schedule. You purchase the stock today at 50/share, and hold it for half a year. If the sale price is 55, your (annualized) rate-of-return is:

a) 12%
b) 14%
c) 22%
d) 24%

Reference no: EM132953778

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