Question :

• One share of Viola Pearl Inc. (VPI) stock currently costs $125 to purchase,
• This stock has historically paid a dividend of $0.05 per share every quarter year,
• The stock's price has increased at a rate of 5% per year over the past several years.

(a) If you assume that the quarterly dividend payments and the stock's price-increase rate will remain constant, use Internal Rate of Return on this investment if you bought 1000 shares today and then sold them 4 years from today, with MARR 7%.