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Q.2 Consider the following table which is based on Apple stock Dividends Stock price Date 61.25 Jan. 4 52.375 Feb. 2 64.875 May 4 70.5

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Q.2 Consider the following table which is based on Apple stock Dividends Stock price Date 61.25 Jan. 4 52.375 Feb. 2 64.875 May 4 70.5 July 30 75.75 Oct. 25 71.00 Dec.30 Use Excel to answer the following questions 0.75 0.75 0.75 0.75 a. Calculate the simple rate of return for the period Jan.4 through Dec. 30 (10) b. Calculate the rate of return for the period Jan. 4 through Dec. 30 using the linking method (10) c. Calculate the rate of return for the period Jan. 4 through Dec. 30 using the Index method (assume that we have 100 shares to begin with) (10) d. Rework part (b) assuming that the income tax rate on dividends is 25% and the capital gains rate is 15% (10) Q.2 Consider the following table which is based on Apple stock Dividends Stock price Date 61.25 Jan. 4 52.375 Feb. 2 64.875 May 4 70.5 July 30 75.75 Oct. 25 71.00 Dec.30 Use Excel to answer the following questions 0.75 0.75 0.75 0.75 a. Calculate the simple rate of return for the period Jan.4 through Dec. 30 (10) b. Calculate the rate of return for the period Jan. 4 through Dec. 30 using the linking method (10) c. Calculate the rate of return for the period Jan. 4 through Dec. 30 using the Index method (assume that we have 100 shares to begin with) (10) d. Rework part (b) assuming that the income tax rate on dividends is 25% and the capital gains rate is 15%

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