Ivonne has bought shares of RIO, Inc. stock for $25.00 per share. She expects a 1.00 dividend at the end of this year. After 2 years, she expects to receive a dividend of $1.25 and to sell the stock for $28.75

What is Ivonne's required rate of return?
A) 4.0%
B) 11.6%
C) 15.2%
D) 24.0%


Answer: B

Business

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