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Question 20 I have purchased common stock in company X for $1,000. I collect $100 in...

Question 20

  1. I have purchased common stock in company X for $1,000.

    I collect $100 in dividends over the year.

    The shares appreciate in value to $1,100 over the year.

    I sell my shares for $1,100.

    The rate of return I have earned on my investment is 22% True or False

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Answer #1

Rate of return=(end value-beginning value+dividend)/beginning value

=(1100-1000+100)/1000

=20%

Hence the statement is False.

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