Question
Suppose you purchased Best Buy stock 9 year(s) ago for $182.71. Best Buy has not paid a dividend in the past and is not expected
Suppose you purchased Best Buy stock 9 year(s) ago for $182.71. Best Buy has not paid a dividend in the past and is not expected to start paying dividends for many years. You plan to hold the stock for 8 more years and hope to sell it for $205.26 per share. Find the annualized holding period return on your investment assuming annual compounding.
(Hint: how long did you invest for? For annualized return think back to PV and FV of a single payment. If you compound $1 for many years, how much, in total, would you have? Remember the interest rate tells you how much cents you earn per $1 invested)
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