You buy shares in Arizona Inc. in Jan. 2021 for $2222. In Jan.
2024 they pay dividends of $111 and in Jan 2026 $222 and in Jan
2028 $333. After you get the 2028 dividend you sell your shares for
$2000. Write out the formula that determines the rates of return on
this transaction.
If instead of buying these shares you could have earned 10% on a
different but equally risky investment what would the above stream
of future payments be worth to you in Jan 2021. Should you invest
your $2222 in the shares or the other investment?
You buy shares in Arizona Inc. in Jan. 2021 for $2222. In Jan. 2024 they pay dividends of $111 and in Jan 2026 $222 and
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You buy shares in Arizona Inc. in Jan. 2021 for $2222. In Jan. 2024 they pay dividends of $111 and in Jan 2026 $222 and
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