Question: Problem 11-8 Real versus Nominal Returns (LO2) You purchase 100 shares of stock for $40 a share. The stock pays a $4 per share dividend

Problem 11-8 Real versus Nominal Returns (LO2) You purchase 100 shares of stock for $40 a share. The stock pays a $4 per share dividend at year-end. o. What is the rate of return on your investment if the end-of-year stock price is (0) $36:() $40:0) $447 (Leave no cells blank.be certain to enter "0" wherever required. Enter your answers as a whole percent.) Stock Price 36 40 44 Rate of Return % % 96 b. What is your real (inflation-adjusted) rate of return if the inflation rate is 8%? (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative amounts should be indicated by o minus sign.) Real Rate of Return Stock Price 36 40 44 96 %

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