Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A stock has had the following year-end prices and dividends. Calculate the capital gains yield, dividend yield, and total return for each year. What are
A stock has had the following year-end prices and dividends. Calculate the capital gains yield, dividend yield, and total return for each year. What are the arithmetic and geometric mean returns over this five-year period? | |||||||
Year | Price | Dividend | |||||
0 | $47.75 | $- | |||||
1 | $63.07 | $1.40 | |||||
2 | $68.63 | $1.45 | |||||
3 | $50.36 | $1.52 | |||||
4 | $61.44 | $1.61 | |||||
5 | $78.61 | $1.70 | |||||
Use the scratchpad to show your work in Excel. | |||||||
Type your numercial answer into the yellow cells below. | |||||||
Answers should be to two decimal places, e.g. 1.23% or $123.45. | |||||||
Year | Captial Gains Yield | Dividend Yield | Total Return | ||||
0 to 1 | 32.08% | 2.93% | 35.02% | ||||
1 to 2 | 8.82% | 2.30% | 11.11% | ||||
2 to 3 | -26.62% | 2.21% | -24.41% | ||||
3 to 4 | 22.00% | 3.20% | 25.20% | ||||
4 to 5 | 27.95% | 2.77% | 30.71% | ||||
Arithmetic Mean | 15.53% | ||||||
Geometric Mean | 9.16% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started