Q13.2 Choose an established company whose shares are listed and actively traded on the ASX.

Find the share’s closing price at the end of each of the preceding six years and the amount of dividends paid in each of the preceding five years. Also, obtain the value of the ASX 300 Average at the end of each of the preceding six years.

a. Use Equation 13.1 (on page 432) to calculate the pre-tax holding period return

(HPR) on the share for each of the preceding five years.

b. Study the international, national and local economic and market developments that occurred during the preceding five years.

c. Compare the share’s returns to the ASX for each year over the five-year period of concern.

d. Discuss the share’s returns in light of the economic and market developments noted in part b and the behaviour of the ASX as noted in part c over the five preceding years.

How well did the share perform in light of these factors?