An investor can put money into a savings account at a bank and earn a small but relatively risk free profit.

An investor can put money into a savings account at a bank and earn a small but relatively

risk free profit. For example, $100 could be invested on January 1 and then be worth $102 at the end of

the year because interest is added. The extra $2 means that the investor is earning an annual return of 2

percent ($2 increase/$100 investment). How is the annual return computed when the capital stock of a

corporation is acquired