Exact rate of growth of purchasing power


You purchase a share of stock for $30. one year later you receive $1.00 as dividend and sold the share for $39. What was your holding period return? Suppose the rate of inflation over the year was 10%. what was the exact rate of growth of purchasing power?

Suppose the tax rate on dividends is 40% and the tax rate on capital gain is 33%. What is the after-tax real rate of return on your investment?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Exact rate of growth of purchasing power
Reference No:- TGS038625

Expected delivery within 24 Hours