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%