155

155. Last year, Marsha purchased a stock at a price of $21.36 a share. Over the course of the year, she received $.60 in dividends per share while inflation averaged 3.2%. Today, Marsha sold her shares for $22.80 a share. What is Marsha's real rate of return on this investment? A. 5.85% B. 6.15% C. 6.30% D. 6.44% E. 6.51%

149. LK Pattern Shops had the following prices and dividends for the past 4 years. What is the geometric average rate of return on this stock based on this period of time? Year Price Dividend 1 $14.20 2 $14.64 $0.50 3 $13.92 $0.52 4 $15.08 $0.55 A. 5.5% B. 5.6% C. 5.7% D. 5.8% E. 5.9%