Suppose that an investor purchased 100 shares of IBM stock at a price of $100 on December 31, 2012. During the year 2013, IBM paid dividends of $2.00 per share, and at the end of the year, the investor sold 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 percent, what was the real return?

C. If the tax rate was 15 percent on dividends and capital gains, what was the after-tax real return? (Hint: Combine the inflation and the taxes to get your answer.)