Show all work please 4. Twenty-five years ago, you purchased 100 shares ofXYZ, I
ID: 2649751 • Letter: S
Question
Show all work please 4. Twenty-five years ago, you purchased 100 shares ofXYZ, Inc. for s8 per share. xYz paid out no cash dividends during this period of time, but it did split its shares many times increasing your position to 9,600 shares (that's correct: ninety-six hundred). If he current market price of XYZ is S12, what is your estimate of the average annual (implicit) rate of return R% on your investment in XYz? In other words, by how much (percentage-wise) did the value of your position in xYz change each year on average?
Explanation / Answer
Answer:
Average annual return = (Current value of stock