Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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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 in
dividends and inflation averaged 2.1%. Today, you sold
your shares for $64.50 a share.
What is your approximate real rate of return on this
investment?
a. 9.6%
b. 8.1%
c. 12.3%
d. 10.2%
e. 5.4%
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Transcribed Image Text:Last year, you purchased a stock at a price of $60 a share. Over the course of the year, you received $1.60 in dividends and inflation averaged 2.1%. Today, you sold your shares for $64.50 a share. What is your approximate real rate of return on this investment? a. 9.6% b. 8.1% c. 12.3% d. 10.2% e. 5.4%
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