You have the opportunity to buy a perpetuity which pays $1,000 annually. Your required rate of return on this investment is 15 percent. You should be essentially indifferent to buying or not buying the investment if it were offered at a price of:

______________: Gap between expectations and product performance

Fill in the blank(s) with the appropriate word(s).

Six months ago, Suzanne purchased a stock for $28 a share. Today she sold the stock at a price of $32 a share. During the time she owned the stock, she received a total of $1.30 in dividends per share. What is her holding period return?

A) 16.6% B) 18.9% C) 33.2% D) 37.8%