Question
A. you purchase a stock for 10,000 and collect $400 at the end of each year in dividends you sell the stock for $11,300 after
A. you purchase a stock for 10,000 and collect $400 at the end of each year in dividends you sell the stock for $11,300 after 4 years what was the annual return on your 10,000 investment?
B. you purchase a building for 900,000, collect annual rent (after expenses) of 120,000 and sell the building for 1,000,000 after 3 years what is the annual return on this investment?
C. you buy a stock for 1,000 and expect to sell it for $900 after 4 years but also expect to collect dividends of $120 a year. calculate the return on this investment and prove that it is less than 11%.
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