Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $46.50. At the end of year 1, you receive a dividend of $2, and buy one more share for $50.50. At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share), and sell the shares for $58.50 each.   What is the time-weighted return on your investment? (Round your answer to 2 decimal places. Do not round intermediate calculations.)

Q: how much should you be willing to pay for this stock today?

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A: Computation:

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