Contemporary Engineering Economics 6th Edition by Chan Park

Exercise 47

On October 1, 1970, Walmart first offered 300,000 shares of its common stock to the public at a price of $16.50 per share. Since that time, Walmart has had 11 two-for-one stock splits. So if you purchased 100 shares in 1970, you would have 204,800 shares as of September 30, 2014. The closing price of the stock on that day was $77.50. What is the compound growth of the Walmart stock over 44 years (This is equivalent to asking what kind of interest rate you have to earn to match the same growth from your savings account.)