I'm unsure where these values in the highlighted portion come from?

Problem What were the realized annual returns for Microsoft (MSFT) stock in 2004 and 2008? Solution When we compute Microsoft's annual return, we assume that the proceeds from the dividend payment were immediately reinvested in Microsoft stock. That way, the return corresponds to remaining fully invested in Microsoft over the entire period. To do that we look up Microsoft stock price data at the start and end of the year, as well as at any dividend dates (Yahoo! Finance is a good source for such data; see also MyLab Finance or www.berkdemarzo.com for addi- tional sources). From these data, we can construct the following table (prices and dividends in $/share): Date Price Dividend Return Date Price Dividend Return 12/31/03 27.37 12/31/07 35.60 8/23/04 27.24 0.08 -0.18% 2/19/08 28.17 0.11 -20.56% 11/15/046 27.39 3.08 11.86% 5/13/08 29.78 0.11 6.11% 12/31/04 26.72 -2.45% 8/19/08 27.32 0.11 -7.89% 11/18/08 19.62 0.13 -27.71% 12/31/08 19.44 -0.92% The return from December 31, 2003, until August 23, 2004, is equal to 0.08 + 27.24 27.37 1 = -0.18% The rest of the returns in the table are computed similarly. We then calculate the annual returns using Eq. 10.5: R2004 = (0.9982) (1.1186) (0.9755) - 1 = 8.92% R2008 = (0.7944) (1.0611) (0.9211) (0.7229)(0.9908) - 1 = -44.39%