A stock has had the following year-end prices and dividends:  Year   Price  Dividend 0   $ 43.29     -   1     48.27   $ .48   2     57.19     .51   3     45.27     .60   4     52.19     .65   5     61.27     .73      What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations. 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
Problem 2MAD
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A stock has had the following year-end prices and dividends:
 

Year   Price  Dividend
0   $ 43.29     -  
1     48.27   $ .48  
2     57.19     .51  
3     45.27     .60  
4     52.19     .65  
5     61.27     .73  
 

 
What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations. 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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