An investor purchases a share for £5.31 at the beginning of the year. Six months later, the investor receives a dividend of £0.03 (net of tax) and immediatelysells the share for £5.53.Capital gains tax of 30% is paid on the difference between the sale and the purchase price.Calculate the net annual effective rate of return the investor obtains on the investment.数字%Enter a percentage correct to 2 decimal places

1. Calculate the capital gain: The capital gain is the difference between the sale price and the…

Answered: An investor purchases a share for £5.31…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

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