1. The table below provides show the share price and dividends received: Share price ($) Dividend ($) 1 Jan 2017 20.00 31 Dec 2017 22.00 0.80 31 Dec 2018 19.50 0.70 31 Dec 2019 20.80 0.75 (a) Compute the arithmetic annual rate of return for each time period separately. (b) Compute the logarithmic annual rate of returns for each time period separately. (c) Compute the geometric average rate of return for the entire time period (2017-2019). (d) Compute the logarithmic annual rate of returns for entire time period (2017-2019).

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
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1. The table below provides show the share price and dividends received:
Share price ($) Dividend ($)
1 Jan 2017
20.00
31 Dec 2017
22.00
0.80
31 Dec 2018
19.50
0.70
31 Dec 2019
20.80
0.75
(a) Compute the arithmetic annual rate of return for each time period separately.
(b) Compute the logarithmic annual rate of returns for each time period separately.
(c) Compute the geometric average rate of return for the entire time period (2017-2019).
(d) Compute the logarithmic annual rate of returns for entire time period (2017-2019).
Transcribed Image Text:1. The table below provides show the share price and dividends received: Share price ($) Dividend ($) 1 Jan 2017 20.00 31 Dec 2017 22.00 0.80 31 Dec 2018 19.50 0.70 31 Dec 2019 20.80 0.75 (a) Compute the arithmetic annual rate of return for each time period separately. (b) Compute the logarithmic annual rate of returns for each time period separately. (c) Compute the geometric average rate of return for the entire time period (2017-2019). (d) Compute the logarithmic annual rate of returns for entire time period (2017-2019).
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