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Case 3 Letecia Industries' and Eduardo Inc.'s stock prices and dividends, along with the Lee 5000 Index, are shown for the period 2015 - 2020.
Case 3 Letecia Industries' and Eduardo Inc.'s stock prices and dividends, along with the Lee 5000 Index, are shown for the period 2015 - 2020. The Lee 5000 data are adjusted to include dividends. Year Letecia Industries Stock Dividend Price Stock Price Eduardo Incorporated Dividend Lee 5000 Index Includes Dividends 2020 P 17,250 P 1,150 P 48,750 P 3,000 P 11,663.98 2019 14,750 1,060 52,300 2,900 8,785.70 2018 16,500 1,000 48,750 2,750 8,679.98 2017 10,750 950 57,250 2,500 6,434.03 2016 11,375 900 60,000 2,250 5,602.28 2015 7,625 850 55,750 2,000 4,705.97 Assume that the risk-free rate on long-term Treasury bonds is 6.04%. 7) Use the data to calculate annual rates of return for Letecia, Eduardo, and Lee. Then calculate each entity's average return over the 5-year period. (Hint: Returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the dividend to the capital gain or loss, and dividing the result by the beginning price
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