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Marjorie Reynolds recently received a bonus at work and has decided to invest it in the stock of either Fabulous Corporation or Terrific Corporation. Following
Marjorie Reynolds recently received a bonus at work and has decided to invest it in the stock of either Fabulous Corporation or Terrific Corporation. Following information is provided:
Fabulous Corp. Terrific Corp. Stock price, 1/1/X1 $98 $76 Stock price, 12/31/X1 $103 $92 Dividend per share during year $3 $0 a. Determine the value of each share of stock on December 31 as compared with January 1. (4 points)
b. Determine the annual rate of return on the two stocks. (4 points)
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