Stocks are trading at 18.6X earnings. You expect earnings to grow 5.9% per year over the next five years. At the end of five years, you expect stocks to be trading at 20X earnings. The dividend yield should be 1.50% per year. If you invest in stocks, what will your compound annual growth rate be?

Answer rating: 100% (QA)

To calculate the compound annual growth rate CAGR of an investment in stocks we need to consider t... View the full answer