We have a stock Bottine and Despotakis (B&D) which we buy for $10. We keep it for 6 years at which point we sell it for $25. During the six year period, it pays us $12 which we reinvest at 5% annual return. Calculate the rate of return we make per annum.

Answer rating: 100% (QA)

Ignoring the reinvested dividendsif you bought the stock for 10 and sold it for 25 after 6 yearsyour ... View the full answer