A stock has had the following year-end prices and dividends: Year Price Dividend $ 1 43.45 23456 48.43 $.72 57.35 .75 45.43 .80 52.35 .85 61.43 .93 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 %

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:
Price Dividend
Year
$
1
43.45
23
2
48.43
$.72
3
57.35
.75
4
45.43
.80
5
52.35
.85
6
61.43
.93
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: Price Dividend Year $ 1 43.45 23 2 48.43 $.72 3 57.35 .75 4 45.43 .80 5 52.35 .85 6 61.43 .93 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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