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Problem 4.1: Emaline Returns If the share price of Emaline, a New Orleans-based shipping firm, rises from $12 to $15 over a one-year period, what is the rate of return to the shareholder given each of the following:

Answer :

braza909

Answer:

Yearly rate of return=25%

Monthly rate of return=0.0187%

Explanation:

Given present amount=$12

Given Future amount=$15

Using equation

[tex]F=P(1+i)^{n}[/tex]

Where F is the future amount,P is the present amount and is the interest rate.

As n=12 since there are 12 months in the year and if calculate yearly n=1

15=12(1+i)^12

i=0.0187% monthly

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