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Last year, you purchased a stock of Green Tech Solutions at a price of $50 a share. Over the course of the year, you received $2.00 in dividends, and inflation averaged 1.8%. Today, you sold your shares for $55.50 a share. What is your approximate real rate of return on this investment? a. 8.2% b. 7.6% c. 10.5% d. 13.0% e. 5.1%

Last year, you purchased a stock of Green Tech Solutions at a price of $50 a share. Over the course of the year, you received $2.00 in dividends, and inflation averaged 1.8%. Today, you sold your shares for $55.50 a share. What is your approximate real rate of return on this investment? a. 8.2% b. 7.6% c. 10.5% d. 13.0% e. 5.1%

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 6DQ
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Last year, you purchased a stock of Green Tech Solutions at a price of $50 a share. Over the course of the year, you received $2.00 in dividends, and inflation averaged 1.8%. Today, you sold your shares for $55.50 a share. What is your approximate real rate of return on this investment? a. 8.2% b. 7.6% c. 10.5% d. 13.0% e. 5.1%
Transcribed Image Text:Last year, you purchased a stock of Green Tech Solutions at a price of $50 a share. Over the course of the year, you received $2.00 in dividends, and inflation averaged 1.8%. Today, you sold your shares for $55.50 a share. What is your approximate real rate of return on this investment? a. 8.2% b. 7.6% c. 10.5% d. 13.0% e. 5.1%
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