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Homework answers / question archive / You purchase 130 shares of stock for $53 a share
You purchase 130 shares of stock for $53 a share. The stock pays a $3 per share dividend at year-end. What is the rate of return on your investment for these end-of-year stock prices? What is your real (inflation-adjusted) rate of return? Assume an inflation rate of 4%. (Round your answers to 2 decimal places. Use the minus sign for negative numbers if it is necessary.)
a. ?nd-of-year stock price = $49
Rate of return % ?
Real rate % ?
b. ?nd-of-year stock price = $53
Rate of return % ?
Real rate % ?
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