Hilltop Garage Pays a Constant Annual Dividend

Hilltop Garage pays a constant annual dividend. One year ago, when you purchased shares of that stock at $12 a share, the dividend yield was 2 percent. Over this past year, the inflation rate has been 2.6 percent. Today, the required return on this stock is 8 percent and you just sold all of your shares. What is your total nominal return on this investment?

A) -77 percent
B) -75 percent
C) -73 percent
D) -70 percent
E) -66 percent