Examlex

Solved

What Is the Annual Rate of Return on an Investment

question 16

Short Answer

What is the annual rate of return on an investment in a common stock that cost $40.50 if the current dividend is $1.50 and the growth in the value of the shares and the dividend is 8 percent?​


Definitions:

Total Amount

The complete value, sum, or quantity of something.

Ordinary Interest

interest calculated on a loan or investment based on a 360-day year, commonly used in banking and finance.

Exact Interest

Interest calculation method utilizing the actual number of days in the interest period and a 365-day year to determine the accurate interest due.

Simple Interest

Interest calculated solely on the principal amount of a loan or investment, without compounding over time.

Related Questions