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You purchased 1000 shares of stock in FMC for $27 per share on January 1, 2006. Over the next four years you received 50 cents
You purchased 1000 shares of stock in FMC for $27 per share on January 1, 2006. Over the next four years you received 50 cents per share annually in dividends. On December 31, 2009 you sell all your shares of FMC for $55.50 per share. Brokerage commisssions are 4% of the total transaction value when buying and selling. (1) What has been your total gross return (in percent) over the four years? (2) What has been your average annual return over the four years?
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