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What is the rate of return if you purchase a stock today for $42 and sell it in five years for $55? Assume the stock
What is the rate of return if you purchase a stock today for $42 and sell it in five years for $55? Assume the stock pays an annual dividend of $2.5.
| At the end of year: | |||||
| 0 | 1 | 2 | 3 | 4 | 5 |
Purchase Price | -42 |
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Dividend |
| 2.5 | 2.5 | 2.5 | 2.5 | 2.5 |
Selling Price |
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| 55 |
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