Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A stock was trading at $124.55 at the end of year 1. It was trading at the end of year 2 at $117.85 immediately after
A stock was trading at $124.55 at the end of year 1. It was trading at the end of year 2 at $117.85 immediately after giving a dividend of $4.90. At the end of year 3. it was trading at $128.05 immediately after giving a dividend of $5.10. Finally, it was trading at $138.15 at the end of year 4 without giving out any dividend. What was the arithmetic average annual return of this stock for the three years between years 1 and 4
a) 5.83%
b) 5.99%
c) 6.15%
d) 6.31%
e) 6.47%
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