You purchase 125 shares of stock for $51 a share. The stock pays a $3 per share dividend at year-end. What is the rate

Question

You purchase 125 shares of stock for $51 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 = $47 What is the Rate of return = ? What is the Real rate = ? b. ?nd-of-year stock price = $51 What is the rate of return =? What is the real rate =? c. ?nd-of-year stock price = $54 What is the rate of return? What is the real rate ?

Help In Homework · Accepted Answer

Answer a) rate of return = -1. 96% Real rate = -5. 73% b) Rate of return = 5.88% Real rate = 1.81% c) Rate of return = 11.76% Real Rate = 7.46% Please see the attached file

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You purchase 125 shares of stock for $51 a share

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