The table below gives the dividends paid and price of a stock at the end of each of the last 5 years, e.g., on December 31, 2016 the stock paid a dividend of $6 and the price after this payment was $250. Note that the price is ex-dividend, i.e., it is the price after the payment of the dividend for that year. If you buy the stock for $250 at the end of 2016 you do NOT receive the dividend of $6 paid at the end of that year.

a. What are the annual HPRs on the stock for each of the 4 years, i.e., the return if you bought the stock at the beginning of the year and sold it at the end of the year after receiving the dividend?

b. What is the arithmetic average of the 4 annual returns calculated in part (a) above?

c. What is the geometric average annual return on the stock?

d. What is the IRR on an investment in this stock if you bought it for $250 at the end of 2016 and sold it for $280 at the end of 2020 (after receiving the $20 dividend)

e. What is annual HPR on the stock over the 4 years if you reinvest each dividend in the stock, e.g., you used the $5 dividend paid at the end of 2017 to purchase an additional 1/46th of a share?

\begin{tabular}{|c|c|c|c|c|c|} \hline & 2016 & 2017 & 2018 & 2019 & 2020 \\ \hline Price & $250 & $230 & $210 & $240 & $280 \\ \hline Div. & & $5 & $10 & $12 & $20 \\ \hline \end{tabular}