Question: appendix B Appendix D Problem 16-03 A stock costs $50 and pays $4 annual dividend. If you expect to sell the stock after six years


Problem 16-03 A stock costs $50 and pays $4 annual dividend. If you expect to sell the stock after six years for $75, what is your articpated return on the westment Use Appendix and Appendix D to answer the question. Round your answer to the nearest whole number Interest Factors for the Present Value of One Dollar Time Period year) 15% awn- .990 980 .971 .961 951 2% 980 961 942 1924 906 3% 971 943 .915 .889 .863 4% 962 925 889 .855 822 5% 952 907 864 823 .784 6% 943 890 840 792 747 7% 935 873 816 763 713 8% 9% 926 917 857 842 794 772 735 708 681.650 10% 909 826 12% 893 797 14% 877 769 756 16% 862 743 641 552 476 18% .847 718 609 516 437 20% 833 .694 579 482 402 24% 806 650 524 423 341 28% 781 .610 477 373 291 .519 497 Bow .705 942 933 923 914 905 888 .871 .853 .837 820 746 .711 1677 666 .623 582 544 .508 .630 583 540 500 463 .227 .178 .645 .410 354 305 263 .227 222 139 108 .614 370 335 314 279 266 226 194 191 .162 162135 .137 08S 838 790 .813 .760 789 .731 .766 .703 744 .676 722 650 701 .625 681 601 .661 577 642 555 .896 .887 .879 .870 .861 3.6 ous vous soov 804 788 773 758 743 585 557 530 592 558 527 497 469 .442 417 475 444 415 388 362 .429 397 368 340 315 2066 052 .040 032 .025 505 481 263 239 205 .183 16 019 015 17 18 853 .844 836 828 820 728 714 700 .686 673 623 605 587 570 554 534 513 .494 475 456 458 436 416 1396 377 394 371 .350 331 312 276 060 20 339 292 252 218 163 123 107 093 317 270 231 198 146 .108 .093 .080 130 116 258 215 178 149 104 073 061 184 146 116 .092 059 038 030 131099.075.057033.020015.012.007 25 780 478 375 233 610 552 295 231 014007 002 002 001 30 742 004 308 412 174 Interest Factors for the Present Value of an Annuity of One Dollar Time Period year 3%A5 % 6% E 8%9ESTOS 21:35 0.990 0. 90 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 08720862 0.847 0.833 0.806 0.781 0.758 0.735 1970 1.942 1913 1.886 1859 1.833 1.808 1.783 1.759 1.736 1.590 1662 16051566 1.528 1.457 1392 1.332 1.276 2.9412.884 2829 2.775 2.723 2.673 2624 2577 2.531 2.487 2402 2322 2206231742106 1.981 1.868 1.766 1.674 3.902 3.BOB 3.717 3.630 3.545 3.4653387 3.312 3.240 3.170 3.037 2.914 2.798 2.690 2:589 2.404 2.241 2.096 1.966 4.853 4.713 4.580 4.452 4.329 4212 4.100 3.993 3.890 3.791 3.6053233 3:274 3.127 2.99 2.745 2.532 2.345 2.181 4 6 7 8 9 10 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.113.889 3.685 3.498 3.326 3.020 2.759 2534 2.399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.9664.6394.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7.435 7.108 6.802 6515 6 247 5.985 5.759 5.328 4.9464.607 4.303 4.031 3.566 3.184 2.868 2.603 9.471 8.983 8.530. 8.111 7.722 7.360 7.024 6.710 6.418 6.1455.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 11 12 12 14 15 10.368 9.787 9.253 8.760 8.306 7.887 7499 7.139 5.805 6.495 5988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 11.255 10.575 9.954 9 385 8.863 8384 7943 75367.16 6.814 6.1945.650 5.1974.793 4.439 3.851 3.387 3.013 2.708 12 124 11 243 10.625 9986 9294 B524 BR 7904 747 7103 5424 58425342 4010 45332912 3427 30202727 13004 12.106 11.296 10.563 9.899 9.295 8.745 8.2447.786 7.367 6.628 6.002 5.468 5.008 4.511 3962 3.459 3.061 2.740 13.865 12.849 11.938 11.118 10.350 9.712 9.108 8.5598.0607.606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 14.718 13.578 12.561 11652 10.838 10.106 9.447 8.851 8.312 7.824 6.974 6.265 5.669 5.162 4.720 4.003 3.503 3.088 2.758 17 15 562 14.292 13.166 12.166 11 274 10.477 9763 9.122 8.544 8.00271206.373 5.749 5.222 4.775 4059 3.518 3.097 2.763 18 16 398 14.992 13.754 12.659 11 690 10 828 10.059 93728.756 8.2017.250 6.467 5.818 5.273 4.812 4.080 3.529 3.104 2.767 1917.226 15.678 14,324 13134 12085 11,158 10 336 9.604 8.950 8.365 7.366 6.550 5.877 5.216 4.144 4.0973.539 3.109 2.770 2018.046 16.351 14.877 13.590 12.462 11.470 10.5949.818 9.128 8.51474696.623 5.9295.353 4.870 4.110 3.546 3.113 2.772 25 22.023 19.523 17.413 15.622 14 094 12.783 11654 10.675 9.823 9.077 7843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15 373 13.765 12.409 11.258 10.274 9.427 8.055 7003 6177 5517 4.9794.160 3,569 3.124 2.778 Problem 16-03 A stock costs $50 and pays $4 annual dividend. If you expect to sell the stock after six years for $75, what is your articpated return on the westment Use Appendix and Appendix D to answer the question. Round your answer to the nearest whole number Interest Factors for the Present Value of One Dollar Time Period year) 15% awn- .990 980 .971 .961 951 2% 980 961 942 1924 906 3% 971 943 .915 .889 .863 4% 962 925 889 .855 822 5% 952 907 864 823 .784 6% 943 890 840 792 747 7% 935 873 816 763 713 8% 9% 926 917 857 842 794 772 735 708 681.650 10% 909 826 12% 893 797 14% 877 769 756 16% 862 743 641 552 476 18% .847 718 609 516 437 20% 833 .694 579 482 402 24% 806 650 524 423 341 28% 781 .610 477 373 291 .519 497 Bow .705 942 933 923 914 905 888 .871 .853 .837 820 746 .711 1677 666 .623 582 544 .508 .630 583 540 500 463 .227 .178 .645 .410 354 305 263 .227 222 139 108 .614 370 335 314 279 266 226 194 191 .162 162135 .137 08S 838 790 .813 .760 789 .731 .766 .703 744 .676 722 650 701 .625 681 601 .661 577 642 555 .896 .887 .879 .870 .861 3.6 ous vous soov 804 788 773 758 743 585 557 530 592 558 527 497 469 .442 417 475 444 415 388 362 .429 397 368 340 315 2066 052 .040 032 .025 505 481 263 239 205 .183 16 019 015 17 18 853 .844 836 828 820 728 714 700 .686 673 623 605 587 570 554 534 513 .494 475 456 458 436 416 1396 377 394 371 .350 331 312 276 060 20 339 292 252 218 163 123 107 093 317 270 231 198 146 .108 .093 .080 130 116 258 215 178 149 104 073 061 184 146 116 .092 059 038 030 131099.075.057033.020015.012.007 25 780 478 375 233 610 552 295 231 014007 002 002 001 30 742 004 308 412 174 Interest Factors for the Present Value of an Annuity of One Dollar Time Period year 3%A5 % 6% E 8%9ESTOS 21:35 0.990 0. 90 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 08720862 0.847 0.833 0.806 0.781 0.758 0.735 1970 1.942 1913 1.886 1859 1.833 1.808 1.783 1.759 1.736 1.590 1662 16051566 1.528 1.457 1392 1.332 1.276 2.9412.884 2829 2.775 2.723 2.673 2624 2577 2.531 2.487 2402 2322 2206231742106 1.981 1.868 1.766 1.674 3.902 3.BOB 3.717 3.630 3.545 3.4653387 3.312 3.240 3.170 3.037 2.914 2.798 2.690 2:589 2.404 2.241 2.096 1.966 4.853 4.713 4.580 4.452 4.329 4212 4.100 3.993 3.890 3.791 3.6053233 3:274 3.127 2.99 2.745 2.532 2.345 2.181 4 6 7 8 9 10 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.113.889 3.685 3.498 3.326 3.020 2.759 2534 2.399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.9664.6394.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7.435 7.108 6.802 6515 6 247 5.985 5.759 5.328 4.9464.607 4.303 4.031 3.566 3.184 2.868 2.603 9.471 8.983 8.530. 8.111 7.722 7.360 7.024 6.710 6.418 6.1455.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 11 12 12 14 15 10.368 9.787 9.253 8.760 8.306 7.887 7499 7.139 5.805 6.495 5988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 11.255 10.575 9.954 9 385 8.863 8384 7943 75367.16 6.814 6.1945.650 5.1974.793 4.439 3.851 3.387 3.013 2.708 12 124 11 243 10.625 9986 9294 B524 BR 7904 747 7103 5424 58425342 4010 45332912 3427 30202727 13004 12.106 11.296 10.563 9.899 9.295 8.745 8.2447.786 7.367 6.628 6.002 5.468 5.008 4.511 3962 3.459 3.061 2.740 13.865 12.849 11.938 11.118 10.350 9.712 9.108 8.5598.0607.606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 14.718 13.578 12.561 11652 10.838 10.106 9.447 8.851 8.312 7.824 6.974 6.265 5.669 5.162 4.720 4.003 3.503 3.088 2.758 17 15 562 14.292 13.166 12.166 11 274 10.477 9763 9.122 8.544 8.00271206.373 5.749 5.222 4.775 4059 3.518 3.097 2.763 18 16 398 14.992 13.754 12.659 11 690 10 828 10.059 93728.756 8.2017.250 6.467 5.818 5.273 4.812 4.080 3.529 3.104 2.767 1917.226 15.678 14,324 13134 12085 11,158 10 336 9.604 8.950 8.365 7.366 6.550 5.877 5.216 4.144 4.0973.539 3.109 2.770 2018.046 16.351 14.877 13.590 12.462 11.470 10.5949.818 9.128 8.51474696.623 5.9295.353 4.870 4.110 3.546 3.113 2.772 25 22.023 19.523 17.413 15.622 14 094 12.783 11654 10.675 9.823 9.077 7843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15 373 13.765 12.409 11.258 10.274 9.427 8.055 7003 6177 5517 4.9794.160 3,569 3.124 2.778
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
