Jonathan purchased some corporate stock 8 years ago for $12,000. He received quarterly dividends of $225 at the end of each quarter for the first 5 years, nothing for the sixth year, and $250 at the end of each quarter for the last 2 years. Immediately after receiving the last quarterly dividend, Jonathan sold the stock for $15,385. What was his annual rate of return? (IRR) Round your rate to the nearest tenth of a percent.
Jonathan purchased some corporate stock 8 years ago for $12,000. He received quarterly dividends of $225 at the end of each quarter for the first 5 years, nothing for the sixth year, and $250 at the end of each quarter for the last 2 years. Immediately after receiving the last quarterly dividend, Jonathan sold the stock for $15,385. What was his annual rate of return? (IRR) Round your rate to the nearest tenth of a percent.
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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Jonathan purchased some corporate stock 8 years ago for $12,000. He received quarterly dividends of $225 at the end of each quarter for the first 5 years, nothing for the sixth year, and $250 at the end of each quarter for the last 2 years. Immediately after receiving the last quarterly dividend, Jonathan sold the stock for $15,385. What was his annual rate of return ? (IRR ) Round your rate to the nearest tenth of a percent.
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