Question
Two years ago, you purchased 100 shares of a cola company. Your purchase price was $62 a share, plus a commission of $7 per share,
Two years ago, you purchased 100 shares of a cola company. Your purchase price was $62 a share, plus a commission of $7 per share, for a total cost of $69 per share. After one year, the stocks market value had risen to $73. At the end of two years, you sold your cola company stocks for $89 a share, less a per-share commission of $4. During the two years you held the stock, you received dividends of $0.62 per share for the first year and $0.74 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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