Josh Purchased 100 Shares of XOM for $76

Multiple Choice

Josh purchased 100 shares of XOM for $76.63 per share at the beginning of 2007. He received dividends per share of $1.37 (2007) , $1.55 (2008) , $1.66 (2009) , $1.74 (2010) , $1.85 (2011) . At the end of 2011, 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) 4.076%