A stock has had the following year-end prices and dividends: Year Price 0 $15.00 1 17.18 18.18 16.68 2 3 4 5 19.02 22.13 Dividend $ 0.15 0.38 0.40 Arithmetic return Geometric return 0.42 0.48 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. % %

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
Problem 2MAD
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A stock has had the following year-end prices and dividends:
Year Price
0
012345
1
$ 15.00
17.18
18.18
16.68
19.02
22.13
Dividend
$ 0.15
0.38
0.40
0.42
0.48
What are the arithmetic and geometric returns for the stock?
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
Arithmetic return
Geometric return
%
%
Transcribed Image Text:A stock has had the following year-end prices and dividends: Year Price 0 012345 1 $ 15.00 17.18 18.18 16.68 19.02 22.13 Dividend $ 0.15 0.38 0.40 0.42 0.48 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Arithmetic return Geometric return % %
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