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Use a financial calculator or a program such as Excel to answer the questions. Round your answers to the nearest whole number. a. You purchase
Use a financial calculator or a program such as Excel to answer the questions. Round your answers to the nearest whole number. a. You purchase a stock for $9,500 and collect $350 at the end of each year in dividends. You sell the stock for $11,000 after six years. What was the annual return on your $9,500 investment? % b. You purchase a building for $750,000, collect annual rent (after expenses) of $110,000, and sell the building for $800,000 after four years. What is the annual return on this investment? % c. You buy a stock for $1,000 and expect to sell it for $940 after six years but also expect to collect dividends of $130 a year. Calculate the return on this investment and prove that it is less than 15 percent. %
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