A stock has had the following year-end prices and dividends: Year Price Dividend 1 $43.33 2 48.31 $0.54 3 57.23 0.57 4 45.31 0.80 5 52.23 0.85 6 61.31 0.93 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Arithmetic return Geometric return % %

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
Dividend
1
$43.33
2
48.31
$0.54
3
57.23
0.57
4
45.31
0.80
5
52.23
0.85
6
61.31
0.93
What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Round the final answers to 2
decimal places.)
Arithmetic return
Geometric return
%
%
Transcribed Image Text:A stock has had the following year-end prices and dividends: Year Price Dividend 1 $43.33 2 48.31 $0.54 3 57.23 0.57 4 45.31 0.80 5 52.23 0.85 6 61.31 0.93 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Arithmetic return Geometric return % %
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