FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Leo purchased a stock for $47.10 a share, received a $1.74 dividend per share and sold the shares for $50.10 a share. During the time

Leo purchased a stock for $47.10 a share, received a $1.74 dividend per share and sold the shares for $50.10 a share. During the time he owned the stock, inflation averaged 3.1 percent. What is his approximate real rate of return on this investment?

A. 6.30%

B. 6.96%

C. 7.18%

D. 9.69%

E. 10.06%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

How can positive self-talk help you change a bad habit?

Answered: 1 week ago

Question

★★★★★
At a recent meeting of the accounting staff in your company, the controller raised the issue of using present value techniques to conduct impairment tests for some of the companys fixed assets. Some...

Answered: 1 week ago

Question

★★★★★
An industrial chemical company has three facilities A, B, and C. Each facility produces polyethylene (PE), polyvinylchloride (PVC), and polystyrene (PS). The table below gives the daily production...

Answered: 1 week ago

Question

★★★★★
Currently Baldwin is paying a dividend of $21.09 (per share). If this dividend were raised by $3.64, given its current stock price what would be the Dividend Yield? The current closing stockout price...

Answered: 1 week ago

Question

★★★★★
Identity plays an important role in people's professions. In fact, people tend to derive a great deal of their identity from what they do. When some professions are identified as male and others as...

Answered: 1 week ago

Question

★★★★★
Scenario. Consider the following. FUN, a medium-sized (but rapidly expanding) INGO hires you to manage the organization's internal communications and external outreach initiatives. Based in...

Answered: 1 week ago

Question

★★★★★
The weekly cost of producing x shirts is given by the function C(x) = 2000 + 27x + 0.45x2. Find the marginal average cost function. Answer T'(x) =

Answered: 1 week ago

Question

★★★★★
13. Question 13 Suppose Sit Down, Co. reported LIFO beginning inventory of $4,056 and LIFO ending inventory of $4,121 in fiscal year 2017. Inventory purchases for 2017 were $21,590 and the change in...

Answered: 1 week ago

Question

★★★★★
Based on your observations, what are the three most critical areas in which Both tjmaxx and ross store could improve? What do you suggest? How can it improve the shopping experience? What are the...

Answered: 1 week ago

Previous Question Next Question