Calculate your rate of return

Assignment Help Financial Management

Reference no: EM132036820

1) You purchased stock 13 years ago for $5,500 and incurred $100 in brokerage fees. You received dividends of $250 at the end of each of the first 3 years, no dividends at the end of years 4 through 11, and $150 at the end of the 12th year. Immediately after receiving a $300 dividend at the end of the 13th year, you sold the stock for $21,400 and incurred brokerage fees of $300. Calculate your rate of return.

a) 11.90%

b) 11.04%

c) 33.13%

2) You are thinking about investing $25,000 in a business with expected returns as follows: costs of $1,250 per quarter for one year, gains of $2,000 per quarter for the next 2 years, and gains of $3,000 per quarter for the next 3 years. What would be your rate of return after 6 years?

a) 15.55%

b) 6.59%

c) 26.36%

Reference no: EM132036820

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