Question
Problem 7-31 Use a financial calculator or a program such as Excel to answer the questions. Round your answers to the nearest whole number. You
Problem 7-31 Use a financial calculator or a program such as Excel to answer the questions. Round your answers to the nearest whole number. You purchase a stock for $12,000 and collect $450 at the end of each year in dividends. You sell the stock for $13,100 after three years. What was the annual return on your $12,000 investment? % You purchase a building for $850,000, collect annual rent (after expenses) of $135,000, and sell the building for $1,000,000 after five years. What is the annual return on this investment? % You buy a stock for $1,000 and expect to sell it for $930 after three years but also expect to collect dividends of $140 a year. Calculate the return on this investment and prove that it is less than 13 percent. %
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