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