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Lorico [155]
2 years ago
12

Problem 4.1: Emaline Returns If the share price of Emaline, a New Orleans-based shipping firm, rises from $12 to $15 over a one-

year period, what is the rate of return to the shareholder given each of the following:
Business
1 answer:
Rama09 [41]2 years ago
8 0

Answer:

Yearly rate of return=25%

Monthly rate of return=0.0187%

Explanation:

Given present amount=$12

Given Future amount=$15

Using equation

F=P(1+i)^{n}

Where F is the future amount,P is the present amount and is the interest rate.

As n=12 since there are 12 months in the year and if calculate yearly n=1

15=12(1+i)^12

i=0.0187% monthly

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