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Author Question: What would be the annual compound return on a stock purchased at $20 per share, held for 5 years, ... (Read 107 times)

SO00

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Question 1

If a stock is purchased for $30 a share and pays $5 per share in dividends a year, what selling price at the end of the year would result in a return of 50%?


◦ $60
◦ $40
◦ $35
◦ $15

Question 2

What would be the annual compound return on a stock purchased at $20 per share, held for 5 years, and sold for $32.22? Ignore brokerage commissions and tax implications and assume the stock paid no dividends during the holding period. Round to the nearest whole percent if necessary.


◦ 3%
◦ 10%
◦ 15%
◦ 16%


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Marked as best answer by SO00 on Apr 14, 2019

ciecieme

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