You bought 3000 shares of Xon one year ago for $58 per share. Exxon paid a $1 (per-share) dividend last year. The current stock price is $52.5.

What rate of return did you earn from your Xon investment?

a. What rate of return did you earn from your Xon investment?

b. If inflation rate over the last year was 2%, what is your real rate of return?

c. Instead of simply buying Exxon shares, you executed the purchase (a year ago) on margin, with the initial margin requirement of 50%. Your broker charges you 5% annual rate on any loans. What is the rate of return from your Exxon investment now?