An investor has examined Target stock and makes the following predictions for the future:
YEAR | 1 | 2 | 3 | 4 |
DIVIDEND |
$1.00 |
$1.32 |
$1.53 |
$1.79 |
The investor believes the selling price in four years will be $85.72. The price of Target stock this morning is $71.48. What return will the investor earn if he is correct about future dividends and selling price?