A stock has had the following year-end prices and dividends:   Year Price Dividend 1 $ 43.45 - 2 48.43 $ .72 3 57.35 .75 4 45.43 .80 5 52.35 .85 6 61.43 .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
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A stock has had the following year-end prices and dividends:

 

Year Price Dividend
1 $ 43.45 -
2 48.43 $ .72
3 57.35 .75
4 45.43 .80
5 52.35 .85
6 61.43 .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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