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What is the rate of return the firm has earned

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Reference no: EM132912858

Problem 1: The firm of M&N purchased a share of Magi common stock exactly one year ago for JD10. During the past year the common stock paid an annual dividend of JD5. The firm sold the security today for JD8. What is the rate of return the firm has earned?

a. -25%
b. -20%
c. 20%
d. 30%

Reference no: EM132912858

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