On the advice of your uncle, you purchased 10 shares of a well-established U.S.-based corpo- rate stock for $20.50 per share. After 1 quarter, you received $0.25 per share dividends each quar- ter for 2 years. At that point, the stock price had gone down in a short-term recession, so you pur- chased 10 more shares at $14.00 per share. The stock continued to pay 25¢ per share on all 20 shares. After 3 years (12 quarters) you decided to sell the stock since it had increased in market value to $22.00 per share. Make the following assump- tions: (a) no commissions for the purchase or sale of the stock, (b) no government taxes on the divi- dends, and (c) quarterly compounding of the rate of return. Did you realize the anticipated 7% per year that the stock market historically returns?

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ANSWER Corporate stock refers to a form of possession in a felony enterprise entity which includes a ... View the full answer