Personal Finance Version 3.1, Flatworld Knowledge

1. You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year.

a. After 1 year, if you sell the shares for $50 per share, what is the percentage return that you earned?

b. After 1 year, if you sell your shares for $60 per share, what is the percentage return that you earned?

d. After 5 years, if you sell your shares for $50 per share, what is the annual percentage return that you earned?

e. After 5 years, if you sell your shares for $60 per share, what is the annual percentage return that you earned?