Problem $1-04$

Compute the real rates of return for the following situations assuming that the inflation rate is $3$ percent. Compute the real rates of return if the rate of Inflation was $9$ percent. Use a minus sign to enter negative values, if any. Do not round intermediate calculations. Round your answers to one decimal places.

a$.$ On February $1,$ you bought $110$ shares of stock in the Francesca Corporation for $$30$ a share and a year later you sold it for $$35$ a share. During the year, you recelved a cash dividend of $$1\mathrm{.}60$ a share.

Real rate of return at $3\%$ : $\%$

Real rate of return at $9\%$ : $\%$

b$.$ On August $15,$ you purchased $140$ shares of stock in the Cara Cotton Company at $$45$ a share and a year later you sold it for $$41$ a share. During the year, you recelved dividends of $$3\mathrm{.}80$ a share.

Real rate of return $3$ at $3\%$ : $q,\%$

Real rate of return at $9\%$ : $\%$

c$.$ At the beginning of last year, you invested $$3,500$ in $70$ shares of the Chang Corporation. During the year, Chang paid dividends of $$7\mathrm{.}00$ per share. At the end of the year, you sold the $70$ shares for $$62$ a share.

Real rate of return at $3\%$ : $\%$

Real rate of return at $9\%$ : $\%$