Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $11.40, but management expects to reduce the p
1 answer:
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Answer:
10.53%
Explanation:
In this question, we use the RATE formula that is shown in the attachment. Kindly find it below:
Data provided
Present value = $34,500
Future value or Face value = $0
PMT = $4,200
NPER = 11 years × 2 = 22 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the rate of return is 10.53%
