Question
Two years ago, you purchased 100 shares of a cola company. Your purchase price was $58 a share, plus a commission of $6 per share,
Two years ago, you purchased 100 shares of a cola company. Your purchase price was $58 a share, plus a commission of $6 per share, for a total cost of $64 per share. After one year, the stocks market value had risen to $68. At the end of two years, you sold your cola company stocks for $78 a share, less a per-share commission of $3. During the two years you held the stock, you received dividends of $0.64 per share for the first year and $0.76 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 %
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 %
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