Problem 7-31 Use a financial calculator or a program such as Excel to answer the questions. Round your answers to the nearest whole number. You purchase a stock for $11,000 and collect $600 at the end of each year in dividends. You sell the stock for $12,400 after five years. What was the annual return on your $11,000 investment? % You purchase a building for $920,000, collect annual rent (after expenses) of $130,000, and sell the building for $1,000,000 after six years. What is the annual return on this investment? % You buy a stock for $1,000 and expect to sell it for $900 after five years but also expect to collect dividends of $130 a year. Calculate the return on this investment and prove that it is less than 14 percent. %
Problem 7-31
Use a financial calculator or a program such as Excel to answer the questions. Round your answers to the nearest whole number.
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You purchase a stock for $11,000 and collect $600 at the end of each year in dividends. You sell the stock for $12,400 after five years. What was the annual return on your $11,000 investment?
% -
You purchase a building for $920,000, collect annual rent (after expenses) of $130,000, and sell the building for $1,000,000 after six years. What is the annual
return on this investment ?
% -
You buy a stock for $1,000 and expect to sell it for $900 after five years but also expect to collect dividends of $130 a year. Calculate the return on this investment and prove that it is less than 14 percent.
%
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