17. 6.17 On the advice of your uncle, you purchased 10 shares of a wellestablished U.S.-based corporate stock for $20.50 per share. After 1 quarter, you received $0.25 per share dividends each quarter for 2 years. At that point, the stock price had gone down in a short-term recession, so you purchased 10 more shares at $14.00 per share. The stock continued to pay 25¢ per share on all 20 shares. After 3 years (12 quarters) you decided to sell the stock since it had increased in market value to $22.00 per share. Make the following assumptions:

(a) no commissions for the purchase or sale of the stock,

(b) no government taxes on the dividends, and

(c) quarterly compounding of the rate of return. Did you realize the anticipated 7% per year that the stock market historically returns?Page 187