Question: Problem 11-8 Real versus Nominal Returns (LO2) You purchase 100 -shares of stock for $25 a share. The stock pays a $3 per share dividend

 Problem 11-8 Real versus Nominal Returns (LO2) You purchase 100 -shares
of stock for $25 a share. The stock pays a $3 per

Problem 11-8 Real versus Nominal Returns (LO2) You purchase 100 -shares of stock for $25 a share. The stock pays a $3 per share dividend at year-end. a. What is the rate of return on your investment if the end-of-year stock price is (1) $22; (ii) $25; (ii) $26 ? 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. What is the rate of return on your investment if the end-of-year stock price is (i) $22; (ii) $25; (iii) $26 ? Note: Leave no celis blank - be certain to enter " 0 " wherever required. Enter your answers as a whole percent. 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 2% ? 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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