Consider the following information on large-company stocks for a period of years.Large-company stocksInflationArithmeticMean15.3%3.5a. What was the arithmetic average annual return on large-company stocks in nominalterms? (Do not round intermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)b. What was the arithmetic average annual return on large-company stocks in realterms? (Do not round intermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)Answer is complete but not entirely correct.a.Nominal return15.30%b.Real return11.80%

1.The nominal rate of return is the rate of return earned on an investment before adjusting for…

Answered: Consider the following information on…

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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Consider the following information on large-company stocks for a period of years. Arithmetic Mean 12.78 3.3 Large-company stocks Inflation a. What was the arithmetic average annual return on large-company stocks in nominal terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the arithmetic average annual return on large-company stocks in real terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Nominal return b. Real return 12.70% 10.26 %
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A stock has had the following year-end prices and dividends: Year 0 1 2 3 4 5 Price $16.50 18.68 19.68 18.18 20.52 23.63 Dividend $ 0.15 0.35 0.37 0.38 0.45 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
A stock has had the following year-end prices and dividends: Year Price 0 012345 1 $ 15.00 17.18 18.18 16.68 19.02 22.13 Dividend $ 0.15 0.38 0.40 0.42 0.48 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Arithmetic return Geometric return % %
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
A stock has had the following year-end prices and dividends: Year Price 1 $65.03 23456 71.90 77.70 63.97 74.51 86.75 Dividend - $.74 .79 .85 .94 1.01 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return Geometric average return % %
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1. A stock has had the following year-end prices and dividends: Year Price ($) Dividend ($) 94.17 92.21 1.05 96.1 1.2 96.3 1.57 94.16 1.66 96.46 1.69 What is the geometric average return for the stock? Answer as a percentage to two decimals (if you get -0.0435, you should answer -4.35).

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