A stock has had the following year-end prices and dividends: Year Price Dividend $14.25 1 16.43 $ .15 2 17.43 .22 3 15.93 .27 4 18.27 .28 21.38 .32 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Arithmetic return % Geometric 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
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A stock has had the following year-end prices and dividends:
Year
Price
Dividend
$14.25
1
16.43
$ .15
17.43
.22
3
15.93
.27
4
18.27
.28
5
21.38
•32
What are the arithmetic and geometric returns for the stock? (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 Price Dividend $14.25 1 16.43 $ .15 17.43 .22 3 15.93 .27 4 18.27 .28 5 21.38 •32 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Arithmetic return % Geometric return %
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