Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in XYZ Corporation for $110. A

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Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in XYZ Corporation for $110. A

fter 1, 2, and 3 years, it will pay a dividend of $5. You expect to sell the stock after 3 years for $120. Is XYZ a good investmenta. True.b. False

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1 answer:

erica [24] · Answer 1 · 2022-06-03T06:54:22+03:00

Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in XYZ Corporation for $110. After 1, 2, and 3 years, it will pay a dividend of $5. You expect to sell the stock after 3 years for $120. Is XYZ a good investment-This statement is False

Explanation:

Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in XYZ Corporation for $110. After 1, 2, and 3 years, it will pay a dividend of $5. You expect to sell the stock after 3 years for $120. Is XYZ a good investment

The above statement is false, since it is a bad investment because after figuring out the stock's value you get $108.15, which is less than what you initially paid for it.