Question
William owns 10 shares of Victor-Hailer stock. Her purchased the stock four years ago for $22.50 a share. The stock is currently trading for $40
William owns 10 shares of Victor-Hailer stock. Her purchased the stock four years ago for $22.50 a share. The stock is currently trading for $40 per share. The stock has paid the following dividends over the past four years:
- Year 1: $1.00/share
- Year 2: $2.00/share
- Year 3: $2.00/share
- Year 4: $3.00/share
What is the compounded rate of return (IRR) that William has earned on this investment?
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Entrepreneurial Financial Management An Applied Approach
Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman
5th Edition
0367335417, 978-0367335410
