The rate of return earned on the investment of $475 five years ago in the corporate stock is 312.63%.
The rate of return is the net gain or loss of an investment expressed as a percentage of the investment's initial cost.
It is given by the formula, R= {Vf - Vi}/{Vi} x 100.
Where:
R = Rate of return
Vf = final value, including dividends and interest
Vi = initial value
Investment cost = $475
Dividends received:
1st two years = $80 ($10 x 8)
Three years = $180 ($15 x 12)
Total dividends received = $260 ($80 + $180)
Total revenue from sale = $1,700
Total proceeds = $1,960 ($1,700 + $260)
Total return = $1,485 ($1,960 - $475)
Rate of return = 312.63% ($1,485/$475 x 100)
Thus, the rate of return is 312.63%.
Learn more about calculating the rate of return at https://brainly.com/question/14220025
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