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Common stock X pays a dividend of $100 at the end of the first year, with each subsequent annual dividend being $10 more than the
Common stock X pays a dividend of $100 at the end of the first year, with each subsequent annual dividend being $10 more than the preceeding one. Alice purchases the stock at a theoretical price to earn an expected annual effective yeild of 10%. Immediately after receiving the 20th dividend, Alice sells the stock based on an annual effective interest rate k. Find k if her annual effective investment yeild over the 20-year period is 11%?
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