A stock has had the following year-end prices and dividends: Year Price $ 32.00 34.18 35.18 33.68 36.02 39.13 0 1 2 3 4 5 Dividend Arithmetic return Geometric return $ 0.15 0.29 0.32 0.33 0.39 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. % %

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
0
1
2
3
4
5
Price
$ 32.00
34.18
35.18
33.68
36.02
39.13
Dividend
$ 0.15
0.29
0.32
0.33
0.39
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
%
%
Transcribed Image Text:A stock has had the following year-end prices and dividends: Year 0 1 2 3 4 5 Price $ 32.00 34.18 35.18 33.68 36.02 39.13 Dividend $ 0.15 0.29 0.32 0.33 0.39 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 % %
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