ABC stock price and dividend history are as follows. Fill in the returns (to 4 decimal places). Price At Dividend Paid at Month End Month Month End Dec $54.00 Jan $53.30 none Feb $55.66 none The averages Arith=_ #8 Discrete Return #4 _% #6 % Continuous Return #5 #7 _% % % Geom= 1.5254% Cont= #9 %
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Trending now
This is a popular solution!
Step by step
Solved in 6 steps
Number 4 is a decrete return. Number 5 is a Continuous return.
Discreet return (#4) =P1P0−1 =53.3054.00−1=−1.2963%=P1P0-1 =53.3054.00-1=-1.2963%
Discreet return (#5) =P2P1−1 =55.6653.30−1=4.4278%
Here is what is listed.
Was this supposed to be #4 & #6?