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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. What is the rate of
You purchase 100 shares of stock for $25 a share. The stock pays a $2 per share dividend at year-end. What is the rate of return on your investment for the end-of-year stock prices listed below? What is your real (inflation-adjusted) rate of return? Assume an inflation rate of 5%. (Leave no cells blank - be certain to enter "O" wherever required. Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your "Real Rate of Return" answers to 2 decimal places.) a. $23 b. $25 c. $26 Rate of Return 0% 8% % Real Rate of Return -4.76 % 2.86 % %
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