Question: a. b. Problem 11-8 Real versus Nominal Returns (LO2) You purchase 100 shares of stock for $50 a share. The stock pays a $4 per

a.
a. b. Problem 11-8 Real versus Nominal Returns (LO2) You purchase 100
b.
shares of stock for $50 a share. The stock pays a $4

Problem 11-8 Real versus Nominal Returns (LO2) 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 ? b. What is your real (inflation-adjusted) rate of return if the inflation rate is 3% ? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What is the rate of return on your investment if the end-of-year stock price is (i) $46; (ii) $50; (iii) $52 ? Note: Leave no cells blank - be certain to enter " 0 " wherever required. Enter your answers as a whole percent. Problem 11-8 Real versus Nominal Returns (LO2) 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 ? b. What is your real (inflation-adjusted) rate of return if the inflation rate is 3% ? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What is your real (inflation-adjusted) rate of return if the inflation rate is 3% ? Note: 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

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