Explain annual compound rate of return on valuable asset

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Reference no: EM131925523

1. Al owns 400 shares of M&M Enterprises and earns 13.2 percent on his investments. M&M recently stated that it will pay dividends per share of $.48 this year and S.55 next year. Al does not want any dividend income this year but does want as much dividend income as possible next year. Ignoring taxes, what will Al's total homemade dividend be next year?

2. Explain annual compound rate of return on a valuable asset? In your own words, not word for word from a textbook.

Reference no: EM131925523

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