Expected annual rate of return on the stock investment

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A stock you are buying today promises no dividends for a long time. In exactly 10 years, you expect the stock will pay its first annual dividend of $1.90. At that time, you also believe the stock could be sold for $41.00. If today you can buy the stock for $15.95 what is the expected annual rate of return on the stock investment?

Reference no: EM13812401

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