Examlex

Solved

What Nominal Annual Return Is Required on an Investment for an Investor

question 58

Multiple Choice

What nominal annual return is required on an investment for an investor to experience a 12% gain in purchasing power? Assume inflation is 4%.


Definitions:

Stock Dividend

A payment to shareholders in the form of additional shares of stock rather than cash.

Cash Dividend

A cash dividend is a payment made by a company out of its earnings to shareholders in the form of cash.

Financial Statement

A written record, detailing a business entity's performance, financial strength, and cash flow, used by stakeholders to make informed decisions.

Contributed Capital

Funds raised through the issuance of shares by a corporation to its shareholders.

Related Questions