Based on the following information, estimate the percentage appreciation on stock bought by the venture investors: founders' purchase price $.50; venture investors' purchase price $2.00; current stock price $10.00; founders holding period = 5 years; venture investors holding period = 3 years.

Question

Quizplus · Accepted Answer

The venture investors' percentage appreciation is calculated as follows:((Current stock price - Venture investors' purchase price) / Venture investors' purchase price) * 100= ((10.00 - 2.00) / 2.00) * 100= (8.00 / 2.00) * 100= 400%

Based on the Following Information, Estimate the Percentage Appreciation on Stock