Need answer the general accounting question not use ai Last year, you purchased a stock at a price of $60.00 pershare. Over the course of the year, you received $2.90 individends and inflation averaged 3.4 percent. Today, yousold your shares for $65.60 per share. What is yourapproximate real rate of return on this investment?

Step 1:- Introduction to the Capital GainThe capital gain refers to an appreciation in the value of…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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
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Last year, you purchased a stock at a price of $60.00 per share. Over the course of the year, you received $2.90 in dividends and inflation averaged 3.4 percent. Today, you sold your shares for $65.60 per share. What is your approximate real rate of return on this investment?