Question
( I will upvote for quick answer! Thank you very much! ) :) :) A) Determine the average annual return on Ford Motors Stock from
( I will upvote for quick answer! Thank you very much! ) :) :)
A) Determine the average annual return on Ford Motors Stock from 2000 to 2004. (left hand-side table)
B) Assume that you purchased Ford Motor Company stock at the closing price on December 31, 2004 and sold it after the dividend had been paid at the closing price on January 26, 2005. Determine the total return rate in the mentioned period. (right hand-side table)
C) Assume that you purchased Ford Motor Company stock at the closing price on December 31, 2004 and sold it at the closing price on December 30, 2005. What is the realized annual return for 2005? (right hand-side table) (2 points)
\begin{tabular}{|lr|} \hline Year End & Realized Return \\ \hline 2000 & 2.0% \\ \hline 2001 & 17.3% \\ \hline 2002 & 24.3% \\ \hline 2003 & 32.2% \\ \hline 2004 & 4.4% \\ \hline \end{tabular} \begin{tabular}{lcc} \hline Date & Price (\$) & Dividend (\$) \\ \hline December 31, 2004 & $14.64 & \\ \hline January 26, 2005 & $13.35 & $0.10 \\ \hline April 28, 2005 & $9.14 & $0.10 \\ \hline July 29, 2005 & $10.74 & $0.10 \\ \hline October 28, 2005 & $8.02 & $0.10 \\ \hline December 30,2005 & $7.72 & \\ \hline \end{tabular}
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