TSC, Inc. sells for $23 and pays an annual per share dividend of $2.00, which you expect to grow at 5 percent. What is your expected return on this stock? Round your answer to the two decimal places. % What would be the expected return if the price were $39 a share? Round your answer to the two decimal places. %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Problem 11-04
TSC, Inc. sells for $23 and pays an
annual per share dividend of
$2.00, which you expect to grow
at 5 percent. What is your
expected return on this stock?
Round your answer to the two
decimal places.
%
What would be the expected
return if the price were $39 a
share? Round your answer to the
two decimal places.
%
Transcribed Image Text:Problem 11-04 TSC, Inc. sells for $23 and pays an annual per share dividend of $2.00, which you expect to grow at 5 percent. What is your expected return on this stock? Round your answer to the two decimal places. % What would be the expected return if the price were $39 a share? Round your answer to the two decimal places. %
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