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8.The table below gives you the end of the year price for one share of the stock of firm XYZ, along with the dividend per

8.The table below gives you the end of the year price for one share of the stock of firm XYZ, along with the dividend per share paid to investors. [Questions 8, 9 and 10 below refer to this setup.]

Date

Price

Dividend

2005/12/30

70.24

2006/12/29

88.84

1.20

2007/12/31

87.46

1.40

2008/12/31

42.67

1.60

2009/12/31

54.13

1.68

2010/12/31

65.26

1.68

2011/12/30

73.35

1.68

2012/12/31

75.36

1.76

Suppose you bought one share of XYZ on Dec 30, 2011 and sold it on Dec 31, 2012. What is the return you made on this transaction?

9.Given the information in Question 8. What is the average total return for the stock of XYZ over the seven years from Dec 30, 2005 until Dec 31, 2012?

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