You Bought a Stock Three Years Ago and Paid $45

Multiple Choice

You bought a stock three years ago and paid $45 per share. You collected a $2 dividend per share each year you held the stock and then you sold the stock for $47 per share. What was your annual compound rate of return?

A) 8.89 percent
B) 8.51 percent
C) 5.84 percent
D) 4.44 percent
E) 2.96 percent