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Math Help - IRR

  1. #1
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    IRR

    1) One share of Festival Cruise Line stock initially sells for $25.Each year, the company pays dividends of $0. 75. After holding the stock for three years, the investor sells it for $30.What is the IRR for this investment?
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  2. #2
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    One share of Festival Cruise Line stock initially sells for $25.Each year, the company pays dividends of $0. 75. After holding the stock for three years, the investor sells it for $30.What is the IRR for this investment?
    25 = 0.75 \cdot (v + v^{2} + v^{3}) + 30 \cdot v^{3}

    Solve for v. There is NOT a direct solution. You will have to implement an iterative process.
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