A year ago, you purchased 100 common stock for $38.42 per share. The stock issued an annual cash dividend of $1.30 per share. If the current stock price is $39.22 and inflation has been 2.1% during the past year, calculate the investments real rate of return using the exact formula.

Select one:

a.

2.95%

b.

4.36%

c.

5.49%

d.

3.30%

e.

5.47%