Answer:
Rate of Return over a 5 year period on Macy’s Inc share is 28%
Explanation:
Definition:
Rate of Return or ROR is calculated as the gain or loss of an investment over a specified period. Period could be years. It is expressed in percentage of the initial investment value. The gains include income received and additional capital realized on the fair value sale of the investment.
The formular for calculating the rate is defined as:
(Future Value less the Current Value divided by the Current Value) * 100.
[tex]\frac{Future Value - Current Value}{Current Value} * 100[/tex]
Detailed explanation on the incremental amount per year on each dividend is depicted in the attached image.
