Six years ago, I bought 200 shares of Disney at $26 per share. The stock had a 2:1 split followed by a 3:1 split. It now trades for $7.34 per share. What is the rate of return on my investment? A. The rate of return on my investment is 9.18% B. The rate of return on my investment is 4.11% C. The rate of return on my investment is 3.23% D. The rate of return on my investment is 9.09% E. The rate of return on my investment is 5.15%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 6P
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Try Yourself - Question 2
Six years ago, I bought 200 shares of Disney at $26 per share. The stock had a
2:1 split followed by a 3:1 split. It now trades for $7.34 per share. What is the rate
of return on my investment?
A. The rate of return on my investment is 9.18%
B. The rate of return on my investment is 4.11%
C. The rate of return on my investment is 3.23%
D. The rate of return on my investment is 9.09%
E. The rate of return on my investment is 5.15%
Transcribed Image Text:Try Yourself - Question 2 Six years ago, I bought 200 shares of Disney at $26 per share. The stock had a 2:1 split followed by a 3:1 split. It now trades for $7.34 per share. What is the rate of return on my investment? A. The rate of return on my investment is 9.18% B. The rate of return on my investment is 4.11% C. The rate of return on my investment is 3.23% D. The rate of return on my investment is 9.09% E. The rate of return on my investment is 5.15%
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