1. A stock has had the following year-end prices and dividends: Year 1 2 3 4 5 6 Price ($) 93.75 94.42 95.5 93.24 94.65 97.9 Dividend ($) 1.38 1.36 1.72 1.76 1.95 What is the geometric average return for the stock? Answer as a percentage to two decimals (if you get -0.0435, you should answer-4.35).

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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1. A stock has had the following year-end prices and dividends:
Dividend ($)
Year
1
2
3
4
5
6
Price ($)
93.75
94.42
95.5
93.24
94.65
97.9
1.38
1.36
1.72
1.76
1.95
What is the geometric average return for the stock? Answer as a percentage to two decimals (if
you get -0.0435, you should answer -4.35).
Transcribed Image Text:1. A stock has had the following year-end prices and dividends: Dividend ($) Year 1 2 3 4 5 6 Price ($) 93.75 94.42 95.5 93.24 94.65 97.9 1.38 1.36 1.72 1.76 1.95 What is the geometric average return for the stock? Answer as a percentage to two decimals (if you get -0.0435, you should answer -4.35).
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