Please correct answer and step by step solution (Calculating rates of return) Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxo's common stock was selling for $20.22 but by year end it was only$18.40. If the firm paid a total cash dividend of $2.27 during the year, what rate of return would you have earned if you had purchased the stock exactly one year ago? What would your rate ofreturn have been if the firm had paid no cash dividend?The rate of return you would have earned is %. (Round to two decimal places.)

Explanation of the Rate of Return:The Rate of return on investment is the return that one has earned…

Answered: (Calculating rates of return) Blaxo…

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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