The total transaction value when buying and selling

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You purchased 1000 shares of stock in Cumberland Software for $3 per share on January 1, 2006.  Over the next four years you received 7 cents per share annually in dividends.  On December 31, 2009 you sell all your shares of Cumberland Software for $16.50 per share.  Brokerage commissions are 4% of the total transaction value when buying and selling.  

Now, determine your net return (after taxes and inflation) on Cumberland Software.  Assume a marginal tax rate of 31% and a rate of inflation over the four year period of 3.75% per year.  (A 31% marginal tax bracket consumer would be taxed 15% for both dividends and capital gains.)

If you could provide me with a formula, that would be great. I have been working on this problem for hours and can not come to the correct solution.

Reference no: EM131551163

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