Billy owns one share of Disney stock. He purchased the share 3 years ago for $15. Disney stock is currently trading for $30 per share. The stock has paid the following dividends over the past three years: year 1, $1.00; year 2, $2.00; year 3, $3.00. What is the compounded rate of return (IRR) that Billy has earned on his investment

35.8%

Explanation:

purchase price 3 years ago $15, so CF₀ = -15

CF₁ = $1

CF₂ = $2

CF₃ = $3 + $30 = $33

using an excel spreadsheet (or you can also a financial calculator), you must determine the internal rate of return (IRR) = 35.8%

the IRR is the interest rate where NPV = 0, or the future cash flows equal the investment amount

answer; possession utility;

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101