In 1968 the Micron Company stock went up from $26 to $32 per share and paid...

Question

Question

In 1968 the Micron Company stock went up from $26 to $32 per share and paid...

In 1968 the Micron Company stock went up from $26 to $32 per share and

paid a $1.50 dividend. Inflation that year increase from 12% to 15% for the

year. What was the real total return for Micron shareholders in 1968?

business finance

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Answer 1

Answer #1

Nominal Return of Dividend = (32-26+1.50)/26 = 28.8462%
Inflation = 15%

Total Real Return in 1968 = (1+Nominal Rate)/(1+Inflation) -1 = (1+28.8462%)/(1+15%)-1 = 12.04%

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Answer 2

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In 1968 the Micron Company stock went up from $26 to $32 per share and paid...

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Mike works for a prominent technology company. His company just paid a $1.50 dividend per share....

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Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock...

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock...

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Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock...

In 1968 the Micron Company stock went up from $26 to $32 per share and paid...

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In 1968 the Micron Company stock went up from $26 to $32 per share and paid...