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You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at yearend. a. What is the rate
You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at yearend. a. What is the rate of return on your investment if the endof-year stock price [9 ti) $38; (ii) $40; 6i?) $42? {LG-V9 "0 ""6 blank - be "I'll?" to en"? "0" wherever required. Enter your answers as a whole percent.) b. What is your real (inflation-adjusted) rate of return if the ination rate is 4%? (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.)
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