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The closing price of shares of ABB Ltd On December 31, previous year was RS. 25. It paid a year end dividend as detailed below:
The closing price of shares of ABB Ltd On December 31, previous year was RS. 25. It paid a year end dividend as detailed below:
Year1 | Year2 | Year3 | Year4 | Year5 |
Rs. 2.00 | Rs. 2.00 | Rs. 2.20 | Rs. 2.50 | Rs. 2.50 |
At what price should an investor sell his shares at the end of year 5 to earn a compound rate of return of 15% on the initial investment of Rs. 25. Ignore commissions and taxes.
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