An investor bought 80 shares of stock at a cost of $7 per share. He held the stock for 14 years and then sold it for a total of $2,800. For the first two years, he received no dividends. For each of the next six years, he received total dividends of $70 per year. For the remaining period, he received total dividends of $140 per year. What rate of return did he make on the investment? The rate of return made on the investment is % (Round to two decimal places.)

An investor bought 80 shares of stock at a cost of $7 per share. He held the stock for 14 years and then sold it for a total of $2,800. For the first two years, he received no dividends. For each of the next six years, he received total dividends of $70 per year. For the remaining period, he received total dividends of $140 per year. What rate of return did he make on the investment? The rate of return made on the investment is % (Round to two decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 2P

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