You purchase 100 shares of stock for $25 a share. The stock pays a $1 per share dividend at year-end.

a.What is the rate of return on your investment if the end-of-year stock price is(Leave no cells blank - be certain to enter "0" wherever required. Enter your answers as a whole percent.)

Stock PriceRate of Return

38%

40%

42%

b.What is your real (inflation-adjusted) rate of return if the inflation rate is 2% (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative amounts should be indicated by a minus sign.)

Stock PriceReal Rate of Return

38%

40%

42%