A stock has had the following year-end prices and dividends: Year Price Dividend $16.25 1 18.43 $ .15 19.43 .30 •33 .34 3 17.93 4 20.27 23.38 .40 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded 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:
TIT
Year
Price
Dividend
$16.25
1
18.43
$ .15
2
19.43
.30
3
17.93
.33
4
20.27
.34
23.38
.40
What are the arithmetic and geometric returns for the stock? (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: TIT Year Price Dividend $16.25 1 18.43 $ .15 2 19.43 .30 3 17.93 .33 4 20.27 .34 23.38 .40 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Arithmetic return |% Geometric return
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