(Answered) Determining the rate of return on investment

Finance

Problem: You purchase 100 shares of stock for $80 a share. The stock pays a $4 per share dividend at year-end.

Required:

What is the rate of return on your investment if the end-of-year stock price is (i) $76, (ii) $80, and (iii) $84?
What is your real (inflation-adjusted) rate of return if the inflation rate for the year is 4% in each of those three scenarios?

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