Based on the following information, estimate the percentage appreciation on stock bought by the founders: founders' purchase price $1.00; venture investors' purchase price $2.00; current stock price $10.00; founders holding period = 5 years; venture investors holding period = 3 years.

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Quizplus · Accepted Answer

The founders' purchase price was $1.00, and the current stock price is $10.00. The appreciation is calculated as (($10.00 - $1.00) / $1.00) * 100% = 900%.

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