Problem $11-8$ Real versus Nominal Returns $($LO$2)$

You purchase $100$ shares of stock for $$25$ a share. The stock pays a $$1$ 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$)$ $$24$; $($ii$)$ $$25$; $($iii$)$ $$28?$

b$.$ What is your real $($inflation$-$adjusted$)$ rate of return if the inflation rate is $2\%?$

Complete this question by entering your answers in the tabs below.

Required A

What is the rate of return on your investment if the end$-$of$-$year stock price is $($i$)$ $$24$; $($ii$)$ $$25$; $($iii$)$ $$28?$

Note: Leave no cells blank $-$ be certain to enter $"0"$ wherever required. Enter your answers as a whole percent.