Microsoft's stock price peaked at 6118% of its IPO price more than 13 years after the IPO† Suppose that $20,000 invested in Microsoft at its IPO price had been worth $1,200,000 (6000% of the IPO price) after exactly 13 years. What interest rate, compounded annually, does this represent? (Round your answer to two decimal places.)
Microsoft's stock price peaked at 6118% of its IPO price more than 13 years after the IPO† Suppose that $20,000 invested in Microsoft at its IPO price had been worth $1,200,000 (6000% of the IPO price) after exactly 13 years. What interest rate, compounded annually, does this represent? (Round your answer to two decimal places.)
Chapter7: Stocks (equity) - Characterstics And Valuation
Section: Chapter Questions
Problem 8PROB
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19.) Microsoft's stock price peaked at 6118% of its IPO price more than 13 years after the IPO† Suppose that $20,000 invested in Microsoft at its IPO price had been worth $1,200,000 (6000% of the IPO price) after exactly 13 years. What interest rate, compounded annually, does this represent? (Round your answer to two decimal places.)
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Transcribed Image Text:Microsoft's stock price peaked at 6118% of its IPO price more than 13 years after the IPO† Suppose that $20,000 invested in Microsoft at its IPO price had been worth $1,200,000 (6000% of the IPO price) after exactly 13 years. What interest rate, compounded
annually, does this represent? (Round your answer to two decimal places.)
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