(Calculating rates of return) Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxo's common stock was selling for $20.22 but by year end it was only $18.40. If the firm paid a total cash dividend of $2.27 during the year, what rate of return would you have earned if you had purchased the stock exactly one year ago? What would your rate of return have been if the firm had paid no cash dividend? The rate of return you would have earned is %. (Round to two decimal places.)
(Calculating rates of return) Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxo's common stock was selling for $20.22 but by year end it was only $18.40. If the firm paid a total cash dividend of $2.27 during the year, what rate of return would you have earned if you had purchased the stock exactly one year ago? What would your rate of return have been if the firm had paid no cash dividend? The rate of return you would have earned is %. (Round to two decimal places.)
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 8P
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Transcribed Image Text:(Calculating rates of return) Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxo's common stock was selling for $20.22 but by year end it was only
$18.40. If the firm paid a total cash dividend of $2.27 during the year, what rate of return would you have earned if you had purchased the stock exactly one year ago? What would your rate of
return have been if the firm had paid no cash dividend?
The rate of return you would have earned is %. (Round to two decimal places.)
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