You purchased $1000$ shares of stock in Cumberland Software for $$3$ per share on January

$1,2016.$ You received $6$ cents per share annually in dividends. On December $31,2019,$

you sell all your shares of Cumberland Software for $$16\mathrm{.}75$ per share. Brokerage

commissions are $5\%$ of the total transaction value when buying and selling.

Now, determine your average annual return $($after taxes and inflation$)$ on Cumberland

Software. Assume a marginal tax rate of $31\%$ and a rate of inflation over the time period

of $3\mathrm{.}80\%$ per year. $($A $31\%$ marginal tax bracket consumer would be taxed $15\%$ for both

dividends and capital gains.$)$

$30\mathrm{.}66\%$

$39\mathrm{.}75\%$

$45\mathrm{.}25\%$

$40\mathrm{.}85\%$