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An investor provides a company with $100,000 of cash by purchasing stock at the end of 2022, receives $1,000 of dividends from the company during
An investor provides a company with $100,000 of cash by purchasing stock at the end of 2022, receives $1,000 of dividends from the company during 2023, and sells the ownership interest at the end of 2023 for $120,000. What is the rate of return that will be generated for 2023?
21%
20%
Cannot be determined from the information supplied.
1%
The following information ($ in millions) comes from a recent annual report of Orinoco.com, Incorporated:
Net sales | $ 10,762 |
---|---|
Total assets | 4,464 |
End of year balance in cash | 1,041 |
Total stockholders' equity | 395 |
Gross profit (Sales Cost of Sales) | 2,503 |
Net increase in cash for the year | 20 |
Operating expenses | 2,051 |
Net operating cash flow | 686 |
Other income (expense), net | $ (20) |
Compute Orinoco's balance in cash at the beginning of the year.
$1,021
$750
$1,041
$1,837
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