A stock has had the following year-end prices and dividends: Year Price Dividend $ 1 43.27 23456 2 48.25 $.45 3 57.17 .48 45.25 .60 5 52.17 .65 6 61.25 73 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 9.56 % %

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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am. 126.

A stock has had the following year-end prices and dividends:
Year Price Dividend
$
1
43.27
23456
48.25
$.45
57.17
.48
45.25
.60
52.17
.65
6 61.25
.73
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
9.56 %
%
Transcribed Image Text:A stock has had the following year-end prices and dividends: Year Price Dividend $ 1 43.27 23456 48.25 $.45 57.17 .48 45.25 .60 52.17 .65 6 61.25 .73 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 9.56 % %
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