5 6 a. Use the year-end stock price data given to calculate annual returns for Bartman, Reynolds, and the Market Index, and then 7 calculate average returns over the five-year period. Remember, returns are calculated by subtracting the beginning price (previous year year-end price) from the ending price (current year year-end price) to get the capital gain or loss, adding the 8 dividend to the capital gain or loss, and dividing the result by the beginning price (previous year year-end price). Assume that dividends are already included in the index., so in your calculation of index return, you don't need to add the dividend. 9 Also, you cannot calculate the rate of return for 2002 because you do not have 2001 data.) 10 11 Data as given in the problem are shown below: 12 Bartman Industries Reynolds Incorporated Market Index 13 Year Stock Price Dividend Stock Price Dividend Includes Divs. 14 2007 $17.250 $1.150 $48.750 $3.000 11,663.98 15 2006 14.750 1.060 52.300 2.900 8,785.70 16 2005 16.500 1.000 48.750 2.750 8,679.98 17 2004 10.750 0.950 57.250 2.500 6,434.03 18 2003 11.375 0.900 60.000 2.250 19 5,602.28 2002 7.625 0.850 55.750 2.000 4,705.97 20