Expected Return on Stock Investment. You are considering the purchase of a share of stock in a firm for $40. The company is expected to pay a $2.50 dividend at the end of the year, and its market...

Expected Return on Stock Investment. You are considering the purchase of a share of stock in a firm for $40. The company is expected to pay a $2.50 dividend at the end of the year, and its market price after the payment of the dividend is expected to be $45 a share. What is the expected return on the investment in this stock?