Question: Please help, I really need this solved today and will kindly upvote!!! You purchase 100 shares of stock for $40 a share. The stock pays
Please help, I really need this solved today and will kindly upvote!!!
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 if the end-of-year stock price is (i) $38; (ii) $40; (iii) $44?
- What is your real (inflation-adjusted) rate of return if the inflation rate is 3%?
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