If a Share of Stock Provided a 14

question 11

Multiple Choice

If a share of stock provided a 14.0% nominal rate of return over the previous year while the real rate of return was 6.0%,then the inflation rate was:

• A) 1.89%.
• B) 7.55%.
• C) 8.00%.
• D) 9.12%.

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Definitions:

Dividends

A portion of a company’s earnings distributed to its shareholders as a reward for their investment.

ASPE

Accounting Standards for Private Enterprises; a set of accounting principles and standards in Canada designed for private companies.

IFRS

International Financial Reporting Standards, which are global standards for how particular types of transactions and other events should be reported in financial statements.

Share Capital

The total amount of capital raised by a company through the issuance of shares to shareholders.