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You purchase 100 shares of stock for $25 a share. The stock pays a $2 per share dividend at year-end. a. What is the rate
You purchase 100 shares of stock for $25 a share. The stock pays a $2 per share dividend at year-end. a. What is the rate of return on your Investment if the end-of-year stock price is (1) $23; (11) $25; (II) $28? (Leave no cells blank - be certain to enter "0" wherever required. Enter your answers as a whole percent.) Rate of Return Stock Price 23 25 % 28 b. What is your real (Inflation-adjusted) rate of return If the inflation rate is 5%? (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative amounts should be indicated by a minus slgn.) Stock Price 23 Real Rate of Return 25 28 96
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