Question
You bought 100 shares of Haslett Helicopters, Inc., in January 2016 for $67.26 per share (assume no commissions, so you spent a total of $6726).
You bought 100 shares of Haslett Helicopters, Inc., in January 2016 for $67.26 per share (assume no commissions, so you spent a total of $6726). The company pays dividends annually, and in 2016 it paid a dividend of 62 cents per share; in 2017 the dividend was 74 cents per share; it 2018 it suspended its dividend indefinitely (i.e., no dividend was paid in 2018 or 2019). You sold the stock in January 2019 at $52.78 (again assume no commissions). What was your ANNUAL return on the stock? Is your calculation based on Geometric or Arithmetic Mean?
-9.1%, Geometric
-7.0%, Geometric
+0.1%, Geometric
-21.5%, Geometric
-6.5%, Geometric
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