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Corporations often distribute profits to their shareholders in the form of dividends, which are simply checks mailed out to shareholders. Suppose that you have the chance to buy a share in a fashion company called Rogue Designs for $35 and that the company will pay dividends of $2 per year on that share every year. What is the annual percentage rate of return?

Respuesta :

abiolataiwo2015

Answer:

5.71%

Explanation:

Corporations annual percentage rate of return

Dividends of $2 per year ÷ Designs for $35

=0.0571

=0.0571×100

=5.71%

Therefore a yearly dividend of $2 on a $35 share of stock equals a 5.71% annual rate of return

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