Question

 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 (i) $22; (ii) $25; (iii) $26?(Leave no cells blank – be certain to enter “0” wherever required. Enter your answers as a whole percent.) Stock price      Rate of return$22 %  $25 %  $26 %   b.What is your real (inflation-adjusted) rate of return if the inflation rate is 2%? (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.) Stock price     Real rate of return$22 %  $25 %  $26 %  

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