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What is the real rate of return if the inflation rate

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Reference no: EM132528163

You purchase 100 shares of stock for $40 a share. the stock pays a $4 per share dividend year-end.

a.  What is the rate of return on your investment if the end of year stock price is (i) $36 (ii) $40 (iii) $42? (enter your answer as a whole percent)

stock price rate of return

36 ????

40 ????

42 ????

b. What is the real (inflation-adjusted) rate of return if the inflation rate is 9%? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places. negative amounts should be indicated by a minus sign.

Reference no: EM132528163

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