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Nutka1998 [239]
1 year ago
8

Brainliest points whatever you want please

Mathematics
1 answer:
nadya68 [22]1 year ago
4 0

Annual rate of return earned when the share was sold at $50 per share is 20%

Annual rate of return earned when the share was sold at $60 per share is 40%

<h3>How to calculate annual rate of return</h3>

Annual rate of return is given by the formula

let end of the year price = eyp

let beginning of the year price = byp

= {(eyp - byp) / byp} * 100

Annual rate of return at share price of $50 per share

when there is paying of dividends the value is added to the the eyp

eyp =  50 * 100 + 2 * 100 * 5 = 6000

byp = 50 * 100 = 5000

= {(6000 - 5000) / 5000} * 100

= 20%

Annual rate of return at share price of $60 per share

eyp =  60 * 100 + 2 * 100 * 5 = 7000

byp = 50 * 100 = 5000

= {(7000 - 5000) / 5000} * 100

= 40%

Learn more about annual rate of return here:

brainly.com/question/3578105

#SPJ1

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