Find k if her annual effective investment yield

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Reference no: EM13870646

Common stock X pays a dividend of $100 at the end of the first year, with each subsequent annual dividend being $10 more than the preceding one. Alice purchases the stock at a theoretical price to earn an expected annual effective yield of 10%. Immediately after receiving the 20th dividend, Alice sells the stock based on an annual effective interest rate k. Find k if her annual effective investment yield over the 20-year period is 11%?

Reference no: EM13870646

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