You plan to purchase today 1000 shares of Snyder Chemical Works

You plan to purchase today 1000 shares of Snyder Chemical Works common stockat $22.50 per share. You intend to hold the stock for 5 years at which time youexpect the stock’s P/E to be 18. At the time of sale you expect the EPS of thecompany to be $3.10. If the company pays a dividend of $2.00 per share annually (i.e., $0.50 per quarter)and you expect to be able to reinvest the dividends at an average annual moneymarket rate of 2%, what is your Horizon Yield (HY) for this stock position.