What was the total return if there were taxes or inflation

Reference no: EM13204627

Suppose that an investor purchases 100 shares of IBM stock at a price of 100 dollars on december 31, 2004. During the year 2005, IBM paid dividends of 2$ per share, and at the end of the year, the investor stold the stock at a price of $115.

A - If there were no taxes or inflation, what was the total return?

B - If there were no taxes but inflation was 5%, what was the real return?

C - If the tax rate was 15% on dividends and captial gains, what was the after-tax real return?

Reference no: EM13204627

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