An investor bought 10 years ago 10 shares of stock at $65/per share. For the first 5 years, he earned a dividend of $6 and for the next 5 years he earned a dividend of $8/share. He can sell the stocks now at $ 86/share. Determine the ROR. Show solution by attaching to BS.

An investor bought 10 years ago 10 shares of stock at $65/per share. For the first 5 years, he earned a dividend of $6 and for the next 5 years he earned a dividend of $8/share. He can sell the stocks now at $ 86/share. Determine the ROR. Show solution by attaching to BS.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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An investor bought 10 years ago 10 shares of
stock at $65/per share. For the first 5 years,
he earned a dividend of $6 and for the next
5 years he earned a dividend of $8/share. He
can sell the stocks now at $ 86/share.
Determine the ROR. Show solution by
attaching to BS.

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