You purchase 100 shares of stock for $50 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 (i) $46; (ii) $50; (iii) $52?(Leave no cells blank - be certain to enter "0" wherever required. Enter your answers as a whole percent.)
46
50
52
b.What is your real (inflation-adjusted) rate of return if the inflation rate is 3%?(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.)
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here