The expected return on this stock

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Reference no: EM132032834

1. A stock dealer has a bid of $17.00 and an ask of $17.25. An investor buys and then sells the stock at these quotes. The investor's transaction cost per dollar invested is____ .

A) 1.47%

B) 1.45%

C) 1.42%

D) 1.40%

2. Formosan Freedom Co. is currently priced at $42.50 per share and it is expected to sell for 6% more next year. The stock will pay an annual dividend per share of $ 1.10 next year. The expected return on this stock is ___.

A) 8.59%

B) 7.65%

C) 6.00%

D) 2.59%

Reference no: EM132032834

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