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Assume That You Purchase Shares of a Company That Recently

Question 48

Multiple Choice

Assume that you purchase shares of a company that recently executed an IPO at the post-offering market price of $32 per share,and you hold the shares for one year.You then sell your shares for $36 per share.The company does not pay dividends,and you are not subject to capital gains taxation.What net return did you earn on your share investment?


A) 11.11%
B) 12.00%
C) 12.50%
D) 13.00%

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