What is the rate of return on your investment

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Reference no: EM131913169

You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at year-end.

What is the rate of return on your investment for the end-of-year stock prices listed below? What is your real (inflation-adjusted) rate of return?

Assume an inflation rate of 3%. (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign.

Do not round intermediate calculations. Round your "Real Rate of Return" answers to 2 decimal places.)

Rate of Return	Real Rate of Return
a. $38	%	%
b. $40	%	%
c. $46	%	%

Reference no: EM131913169

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