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Damien Plans to Buy a Share at $120 and Hold

Question 39

Multiple Choice

Damien plans to buy a share at $120 and hold it for 5 years. During this period, he would receive average annual dividends of $4 a share. He expects to receive $145 at the end of the 5-year period when he sells the share. What are the keystrokes used to calculate the rate of return on the investment?


A) N = 5, PV = -120, PMT = 4, FV = 145
B) N = 5, PV = 120, PMT = 4, FV = -145
C) N = 5, PV = -145, PMT = -4, FV = 120
D) N = 4, PV = -120, PMT = 5, FV = 145
E) N = 4, PV = 145, PMT = 5, FV = -120

Correct Answer:

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