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What is the annual return on his investment


Question 1: Mr. Darden sold his house for $165,000. He bought it for $55,000 nine years ago. What is the annual return on his investment?

Question 2: An issue of common stock has just paid a dividend of $3.75. Its growth rate is 8%. What is its price if the market's rate of return is 16%?

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Finance Basics: What is the annual return on his investment
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