Josh Purchased 100 Shares of XOM for $76

question 20

Multiple Choice

Josh purchased 100 shares of XOM for $76.63 per share at the beginning of 2011.He received dividends per share of $1.37 (2011) , $1.55 (2012) , $1.66 (2013) , $1.74 (2014) , $1.85 (2015) .At the end of 2015 just after receiving the last dividend, he sold the stock for $84.76.What was his average annual rate of return form both dividends and capital gains? (Hint: compute the IRR, assume that all dividends were received at the end of the year.)

• A)9.831%
• B)3.774%
• C)3.423%
• D)4.94%

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Definitions:

Economy

The system by which goods and services are produced, distributed, and consumed within a particular country or area.

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.

Labor Force Participation Rate

The percentage of the total working-age population that is active in the labor market, either employed or actively seeking employment.

Adults

Individuals who have reached a specific age or maturity level, generally considered to be the age at which they can assume legal rights and responsibilities.