Real reverse Nominal Returns

posted by .

You purchase 100 shares of stock for \$40 a share. The stock pays a \$2 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) rated of return? Assume an inflation rate of 4 percent.
a. \$38
b. \$40
c. \$42

• Real reverse Nominal Returns -

bgbfg

Similar Questions

1. math

A stock that sold for 22\$ at the beginning of the year was selling for 24\$ at the end of the year. If the stock paid a dividend of .50\$ per share,what is the simple intrest rate on a investment in this stock?
2. Math

Part 1. A stock is selling today for \$40 per share. At the end of the year, it pays a dividend of \$2 per share and sells for \$44. What is the total rate of return on the stock?
3. Math

Real Reverse Nominal Returns You purchase 100 shares of stock for \$40 a share. The stock pays a \$2 per share dividend at year-end. What is the rate of return on your investment for these end-of-year stock prices?
4. finance

There is a preferred stock that pays a dividend of \$5.00 at the end of each year. The stock sells for \$60.00 a share. What is the oreferred stocks require rate of return?
5. investing

How do I find stock on margin rate of return?
6. Finance

Sports Novelties, Inc., has experienced an explosion in demand for its feathered football novelties. The firm currently (time 0) pays a dividend of \$0.25 per share. This dividend is expected to increase to \$0.75 per share 1 year from …
7. Algebra 2

Tracey is contemplating the purchase of 100 shares of a stock selling for 15 per share. The stock pays no dividends. Her broker says that the stock will be worth 20 per share in 2 years. What is the annual rate of return on this investment?
8. investment

eddy is considering a stock purchase. the stock pays constant annual dividend of \$2.00 per share, and is currently trading at \$20 . Eddy's required rate of return for this stock is 12%. should he buy this stock?
9. accounting I

stock outstanding as follows: 15,000 shares of cumulative 4%, preferred stock of \$20 par, and 19,000 shares of \$100 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, …
10. Economics

You buy 100 shares of stock at \$4.00 per share. You receive one dividend of 10 cents per share. You sell the stock 1 year later for \$5.50 per share. The fee for selling the stock is \$15.00. What is the total profit you made on the …

More Similar Questions