Question

A couple bought some stock for $20 per share that pays an annual dividend of 1.2 $per share. After 2 years price of the stock was $22. Find
a) Return of investment in %
b) simple interest rate on the growth of their investment in %

Answer 1

Answer:

5%

3%

Step-by-step explanation:

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Answer 2

Step-by-step explanation:

The initial price of the stock is $30. Then the growth of their investment would be:

33/30=1.1

1.1-1=.1, or 10% growth on their stock.

If you count the dividend as growth, then you have:

33+1.8/30=1.16, or 16% growth. ☺☺☺☺

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