YOU BUY STOCK IN ABC INC. TODAY FOR $70. ABC EXPECTS TO PAY A $2 D...

16. You buy stock in ABC inc. today for $70. ABC expects to pay a $2 dividend next year, no dividend in year 2 and a $5 dividend in year 3. You expect to sell it at the end of year 3 realizing an expected annual return of 0% annually. What is your rate of return over the 3 year period? A) Gain of 10%B) Loss of 10% C) Gain of 11.11% D) Loss of 11.11% E) There is no capital gain or loss