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1 .You purchased 100 shares in a real estate investment trust for $30 a share....

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Finance

1 .You purchased 100 shares in a real estate investment trust for $30 a share. The trust paid the following annual dividends:

Year Dividend
1 $ 2.10
2 2.53
3 1.45
4 2.70
  1. What was your annualized return on the investment if you sell the stock for $30? Round your answer to the nearest whole number.
  2. What was your annualized return on the investment if you sell the stock for $40? Round your answer to the nearest whole number.

2.

You invest $2,800 in stock A and $2,800 in stock B. If you earn 11 percent on stock A and 6 percent on stock B and hold each security for 13 years, what are the terminal values for each investment? Round your answers to the nearest cent.

Stock A: $

Stock B: $

If you continue to hold each security and earn the same returns for 25 years, how much more will stock A generate than stock B over the entire time period? (When you invest for retirement, you should think about the impact of returns over time.) Round your answer to the nearest cent.

$

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