An investor purchased stock for $1000. His dividends in the first five years were: $140, $150, $170, $50, and $30. He sold the stock for $700 at the end of the fifth year. What was the rate of return on his investment?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
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An investor purchased stock for $1000. His dividends in the first five years were: $140, $150, $170, $50, and $30. He sold the stock for $700 at the end of the fifth year. What was the rate of return on his investment?

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