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You purchased a share of XYZ stock at the end of 2007 for $95.00. By...

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You purchased a share of XYZ stock at the end of 2007 for $95.00. By 2017 the XYZ share price decreased to $81.29. In 2007 the annual dividend on XYZ stock was $1.28 per share. Over the next ten years the dividend increased to $3.00 per share in 2017. A) What was the annual rate of escalation on the dividend of XYZ? B) What was the annual rate of de-escalation in the stock price? A5-6 ) Assume the annual dividend escalated each year at the Case "A" result If vou re-invest all the dividends received from 2008 through 2017 at an annual rate of 8% per year and sell the stock at the end of 2017 for $81.29, what would be your escalated dollar compound interest rate of growth on your investment over the 10-year period? D) If inflation averaged 1.75% each year for the same 10-year period, what would be your constant (or real) dollar rate of return on the overall investment from part C? E) Using 2007 as a base year, what is the relative purchasing power of the 2017 future worth profit "F" you obtained from part C if infla- tion is the same 1.75% per year

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