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Based on the following information, estimate the percentage appreciation on stock bought by the venture investors: founders purchase price $.50; venture investors purchase price $2.00;

Based on the following information, estimate the percentage appreciation on stock bought by the venture investors: founders purchase price $.50; venture investors purchase price $2.00; current stock price $10.00; founders holding period = 5 years; venture investors holding period = 3 years.

100%

400%

600%

800%

Answer is 400%. Please spell out formulas and show step by step. Thank you

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