You purchase a share of stock for $30. One year later you receive $1.00 as dividend and sold the share for $39. What was your holding period return? Suppose the rate of inflation over the year was 10%. What was the exact rate of growth of purchasing power?

Suppose the tax rate on dividends is 40% and the tax rate on capital gain is 33%. What is the after-tax real rate of return on your investment?

Answer rating: 100% (QA)

The holding period return on an investment earned during a period is given by the increase of the Sh... View the full answer