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You purchase 110 shares of stock for $54 a share. The stock pays a $6 per share dividend at year-end. What is the rate of
You purchase 110 shares of stock for $54 a share. The stock pays a $6 per share dividend at year-end. What is the rate of return on your investment for these end-of-year stock prices? What is your real (inflation-adjusted) rate of return? Assume an inflation rate of 4%. (Round your answers to 2 decimal places. Use the minus sign for negative numbers if it is necessary.)
a. nd-of-year stock price = $50
Rate of return % | |
Real rate % |
b. nd-of-year stock price = $54
Rate of return % | |
Real rate % |
c. nd-of-year stock price = $60
Rate of return % |
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