Question
You purchase 100 shares of stock for $50 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 $50 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 (i) $48; (ii) $50; (iii) $54?
What is your real (inflation-adjusted) rate of return if the inflation rate is 3%?
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
