Compute the rate of return for an investor who pays $10 for a stock and sells the stock one year later for $12. The investor also receives a dividend of $1.31.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
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Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 1FPE: What makes for a good investment? Use the approximate yield formula or a financial calculator to...
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Can you explain this general accounting question using accurate calculation methods?

Compute the rate of return for an investor
who pays $10 for a stock and sells the stock
one year later for $12. The investor also
receives a dividend of $1.31.
Transcribed Image Text:Compute the rate of return for an investor who pays $10 for a stock and sells the stock one year later for $12. The investor also receives a dividend of $1.31.
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