Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question: Two years ago, you purchased 100 shares of a cola company. Your purchase price was $54 a share, plus a commission of $8 per
Question: Two years ago, you purchased 100 shares of a cola company. Your purchase price was $54 a share, plus a commission of $8 per share, for a total cost of $62 per share. After one year, the stock's market value had risen to $68. At the end of two years, you sold your cola company stocks for $72 a share, less a per-share commission of $4. During the two years you held the stock, you received dividends of $0.60 per share for the first year and $0.72 per share for the second year. a. Calculate your annual shareholder return for each of the two years you owned the stock. (Round your answers to 1 decimal place. Omit the "%" sign in your response.) Annual shareholder return Year 1 Year 2 10.6 9.9 X 8 b. Calculate your annual average compound return. (Round your intermediate calculations and final answer to 1 decimal place. Omit the "%" sign in your response.) Annual average compound return %
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