Microsoft's stock price peaked at 6118% of its IPO price more than 13 years after the IPO† Suppose that $45,000 invested in Microsoft at its IPO price had been worth $2,700,000 (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 $45,000 invested in Microsoft at its IPO price had been worth $2,700,000 (6000% of the IPO price) after exactly 13 years. What interest rate, compounded annually, does this represent? (Round your answer to two decimal places.)

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter7: Stocks (equity) - Characterstics And Valuation

Section: Chapter Questions

Problem 8PROB

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