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Billy owns one share of Disney stock. He purchased the share 3 years ago for $15. Disney stock is currently trading for $27 per share.
Billy owns one share of Disney stock. He purchased the share 3 years ago for $15. Disney stock is currently trading for $27 per share. The stock has paid the following dividends over the past three years: year 1, $1.00; year 2, $2.00; year 3, $3.00. What is the compounded rate of return (IRR) that Billy has earned on his investment?
A.9.1%. | ||
B.19.1%. | ||
C.29.1%. | ||
D.31.8%. |
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