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You purchase 100 shares of stock for $40 a share. the stock pays a $4 per share dividend at year-end. You purchase 100 shares of
You purchase 100 shares of stock for $40 a share. the stock pays a $4 per share dividend at year-end.
You purchase 100 shares of stock for $40 a share. The stock pays a $4 per share dividend at year-end a. What is the rate of return on your investment if the end-of-year stock price is () $36; (i) $40; () $44? (Leave no cells blank - be certain to enter "0" wherever required. Enter your answers as a whole percent.) Stock Price Rate of Return 36 40 % % 44 b. What is your real (inflation-adjusted) rate of return if the inflation rate is 8% ? (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.) Real Rate of Return Stock Price 36 % 40 N 44 Help Save & E Step by Step Solution
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