FV = PV + PV) FV PV (1 + r) FV PV = (1+r) FV -1 PV FV In(1+r) 1. Your aunt bought AT&T stock 2 years ago for $26.08. Today she sold it for $39.70. What was her implied return? 2. A real estate investor expects a property to sell for $1,000,000. If the property costs $799,370.55 and the implied return is 8%, how long until the property is sold? 3. You bought Target stock 3 years ago. In the first year, you collected a dividend of $2.48, the second year, you collected a dividend of $2.56. the third year you collected a dividend of $2.64 and sold the stock for $120.13. (Hint: this means your third year cash flow was $122.77.) If you earned a return of 6.5% per year, how much did you buy the stock for 3 years ago