Question
Two years ago, you purchased 100 shares of a cola company. Your purchase price was $50 per share, plus a commission of $5 per share,
Two years ago, you purchased 100 shares of a cola company. Your purchase price was $50 per share, plus a commission of $5 per share, for a total cost of $55 per share. After one year, the stock's market value had risen to $58. At the end of two years, you sold your cola company stocks for $68 per share less per-share commission of $2.During the two. years you held the stock, you received dividends of $0.56 per share for the first year and $0.68 per share for the second year.
1. Calculate your annual shareholder return for each of the two years you owned the stock
2. Calculate your annual average compound return
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