A stock has had the following year-end prices and dividends: Year Price Dividend $43.55 48.53 $ .87 57.45 45.53 1 2 3 .90 4 .95 52.45 1.00 61.53 1.08 What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.., 32.16.)

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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A stock has had the following year-end prices and dividends:
Year
Price Dividend
$43.55
48.53 $ .87
1
-
2
57.45
.90
4
45.53
.95
52.45
1.00
61.53
1.08
What are the arithmetic and geometric average returns for the stock? (Do not
round intermediate calculations and enter your answers as a percent
rounded to 2 decimal places, e.g.., 32.16.)
Arithmetic average return
%
Geometric average return
%
Transcribed Image Text:A stock has had the following year-end prices and dividends: Year Price Dividend $43.55 48.53 $ .87 1 - 2 57.45 .90 4 45.53 .95 52.45 1.00 61.53 1.08 What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.., 32.16.) Arithmetic average return % Geometric average return %
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