What was the annual compound rate of return on stock

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Reference no: EM131977567

1. You purchased stock in a firm for $125. Eight years later you sold the stock for $175. What was the annual compound rate of return on the stock?

2.5%

4.3%

8.7%

8.9%

2. Du Pont Identity: A firm has a profit margin of 10%, total asset turnover of 2, and a Debt-to-Equity ratio of 40%. What is the firm's Return on Equity?

14%

28%

97%

Reference no: EM131977567

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