An analyst predicted that Logistics, Inc. stock, would offer a total return of at least 12% in the coming year. At the beginning of the year, the firm had a total stock market capitalization (price per share times shares outstanding) of $6 million. At the end of the year, its market cap was $7 million even though it experienced a loss, or negative net income, of $2 million. Logistics paid no dividends during the year. Was the analyst's prediction correct? Explain.
The total rate of return for the firm is %. (Round to two decimal places.)