Mithril Capital had the following six end-of-year share prices: 2015 2016 2017 2018 2019 2020 Price $48.07 $53.32 $32.74 $52.84 $45.83 $57.89 A) Using only the above information, what was the arithmetic average annual return on the Mithril Capital's stock over the 2015-2020 period? (Round your answer to two decimal places) Assume that Mithril Capital also paid the following end-of-year dividends to shareholders (which should be reflected in each of your answers to the remaining questions below): 2015 2016 2017 2018 2019 2020 Dividend $2.54 $3.56 $3.67 $2.08 $2.55 B) What is your new estimate of the Mithril Capital's arithmetic average stock return over this period? (Round your answer to two decimal places) C) What was the standard deviation (i.e. volatility) of Mithril Capital's stock returns over this period? (Round your answer to two decimal places) Check

Mithril Capital had the following six end-of-year share prices: 2015 2016 2017 2018 2019 2020 Price $48.07 $53.32 $32.74 $52.84 $45.83 $57.89 A) Using only the above information, what was the arithmetic average annual return on the Mithril Capital's stock over the 2015-2020 period? (Round your answer to two decimal places) Assume that Mithril Capital also paid the following end-of-year dividends to shareholders (which should be reflected in each of your answers to the remaining questions below): 2015 2016 2017 2018 2019 2020 Dividend $2.54 $3.56 $3.67 $2.08 $2.55 B) What is your new estimate of the Mithril Capital's arithmetic average stock return over this period? (Round your answer to two decimal places) C) What was the standard deviation (i.e. volatility) of Mithril Capital's stock returns over this period? (Round your answer to two decimal places) Check

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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