11. An investment in 10,000 common shares of a company for one year earned a 15.5% return. The investor received a $2,5...

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Answer 1

Answer #1

Rate of return=(Selling price-Buy price+Dividend)/(Buy price)
Dividend per share=2500/10000=0.25

=(24-Buy price+0.25)/(Buy price)=15.5%
=(24-Buy price+0.25)=0.155*(Buy price)
=(24+0.25)=0.155*(Buy price)+Buy price
24.25=Buy price*(.155+1)
Buy price=24.25/(.155+1)=$20.99567 or $21 (Rounded to the nearest whole number)

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Answer 2

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