Question
Consider the purchase of a stock at the beginningof Year 1 at $40 per share. During the years1 through 4, you have the following results:
Consider the purchase of a stock at the beginningof Year 1 at $40 per share. During the years1 through 4, you have the following results:
Year Dividend at end of the period Ending stock price
1 $1.00 $42.00
2 $1.50 $42.18
3 $2.00 $38.70
4 $2.50 $40.00
What is the average annual return on this investment?
Step by Step Solution
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Step: 1
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Step: 3
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Financial Accounting A User Perspective
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
6th Canadian Edition
470676604, 978-0470676608
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