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Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, an auction house sold a sculpture at
Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, an auction house sold a sculpture at auction for a price of $10,231,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,217,500 What was his annual rate of return on this sculpture? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual rate of return T% ces For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Future Value Years 10 Present Value $ 1,950 8,152 70,355 177,796 Interest Rate 14 % 8 13 8 15 6 5 The variables in a present value of an annuity problem include all of the following, except: Multiple Choice Time period Source of funds Payments Interest rate of a preferred stock plans to pay a $5 dividend annually forever and you consider the risk of the company to warrant an 8% return, how much should you be willing to pay for it? Mumple Choice O $80 56250 5.40 Not enough formation to
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