FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You buy some shares of MJK at $500 per share. 7 years later, you sell these shares for $645.50 per share. You received total of

You buy some shares of MJK at $500 per share. 7 years later, you sell these shares for $645.50 per share. You received total of $100 dividends during this investment period. What is your Effective annual rate (EAR)?

A.

55.25%
B.

12.47%
C.

5.87%
D.

45.91%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Financial Management

Intermediate Financial Management

Authors: Eugene F. Brigham, Phillip R. Daves

11th edition

978-1111530266

Students also viewed these Finance questions

Question

The number of animals caught in an animal trap during an hour has the Poisson distribution with parameter ????. If it is known that the probability that no animal is trapped during an hour equals...

Answered: 1 week ago

Question

★★★★★
Lionels Life Jacket Rentals leases life jackets each day from a supplier and rents them to customers who use them when they raft down the Delaware River. Each day, Lionel leases 30 lifejackets from...

Answered: 1 week ago

Question

★★★★★
Kavi Eco Sheep (KES) Co operates several businesses based around sheep farming. KES Co has a herd of around 5,000 sheep at any one time. In addition to selting lambs and adult sheep at market, KES Co...

Answered: 1 week ago

Question

★★★★★
Select the necessary words from the list of possibilities to complete the following statements. Statements 1. A(n) opinion is an opinion that the financial statements of a public company fairly...

Answered: 1 week ago

Question

★★★★★
The Texas Bill of Rights, Section 24 states that the "Military shall _______ to the civil authority." Question 99 options: at all times be subordinate. at times of peace be subordinate. at no time be

Answered: 1 week ago

Question

★★★★★
Question 5 of 21. A significant downfall of the Milestone chart is that it does not effectively portray the relationships, dependencies, and constraints among the project activities and events. Which...

Answered: 1 week ago

Question

★★★★★
Lamont Company is a Canadian company that produces electronic switches for the telecommunications industry. Lamont regularly imports component parts from Sousa Ltd . , a supplier located in Mexico,...

Answered: 1 week ago

Question

★★★★★
Read the article and pick out a statistical concept from the article that relates to the course material we have covered thus far. Explain how the concept relates to course topics and give an example...

Answered: 1 week ago

Question

★★★★★
24. Air Weegotcha overbooks as many as five passengers per flight because some passengers with reservations do not show up for the flight. The airline's records indicate the following probabilities...

Answered: 1 week ago

Previous Question Next Question