A stock has had the following year-end prices and dividends: Year 1 IN34in10 2 5 Price: $64.68 71.55 77.35 63.62 73.81 83.25 Dividend Arithmetic average return Geometric average return. $.67 .72 .78 .87 .94 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.. 32.16. % %

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
1234 in 10
5
6
Price
$64.68
71.55
77.35
63.62
73.81
83.25
Dividend
Arithmetic average return.
Geometric average return
$.67
.72
.78
.87
.94
What are the arithmetic and geometric returns for the stock?
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g..
32.16.
%
%
Transcribed Image Text:A stock has had the following year-end prices and dividends: Year 1234 in 10 5 6 Price $64.68 71.55 77.35 63.62 73.81 83.25 Dividend Arithmetic average return. Geometric average return $.67 .72 .78 .87 .94 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.. 32.16. % %
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