You purchase a stock for $40 and sell it for $50 after holding it for five years During this period you collected an annual dividend of $2 Did you earn more than 12 percent on your investment What was the annual dollar weighted rate of return ...

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You purchase a stock for $40 and sell it for $50 after holding it for five years.

Question:

You purchase a stock for $40 and sell it for $50 after holding it for five years. During this period you collected an annual of $2. Did you earn more than 12 percent on your investment? What was the annual dollar-weighted rate of return?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...