A stock has had the following year-end prices and dividends: Year Price Dividend $ 1 43.35 2 48.33 $.57 3 57.25 .60 4 45.33 .80 5 52.25 .85 6 61.33 .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
Problem 2MAD
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A stock has had the following year-end prices and dividends:
Year
Price Dividend
$
1
43.35
2
48.33
$.57
3
57.25
.60
4
45.33
.80
5
52.25
.85
6
61.33
.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: Year Price Dividend $ 1 43.35 2 48.33 $.57 3 57.25 .60 4 45.33 .80 5 52.25 .85 6 61.33 .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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