Provide correct answer general Accounting question Last year, you purchased a stock at a price of $60 a share.Over the course of the year, you received $1.60 individends and inflation averaged 2.1%. Today, you soldyour shares for $64.50 a share.What is your approximate real rate of return on thisinvestment?a. 9.6%b. 8.1%c. 12.3%d. 10.2%e. 5.4%

To find the true rate of return, we must consider not only the capital gain but also the dividends…

Answered: Last year, you purchased a stock at a…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 2P

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Similar questions

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Today, you sold your Riot Blockchain, Inc stock (ticker: RIOT) for $54.5/share. Last year, you paid $51.5/share for that stock. During the year, RIOT paid you $2/share in dividends. If inflation averaged 2.8% during the year, your approximate real rate of return on the RIOT investment is: a. 12.5 percent b. 9.7 percent c. 12.2 percent d. 3.5 percent e. 6.9 percent
Financial accounting
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