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You need to complete this problem in a spreadsheet and show all your work. Create an excel file that shows your calculations. Clearly indicate your

You need to complete this problem in a spreadsheet and show all your work. Create an excel file that shows your calculations. Clearly indicate your final answer(s). Name the file with the following convention: Lastname-Problem#.xlsx. For instance, Roark-Problem1.xlsx.

Assume that you purchased stock in Buffalo Wildlings Inc for $26 per share. The following chart shows your dividends and the end of year price for each of the past six years:

Year Dividends Ending Price
1 $0.80 $27.50
2 $0.84 $32.50
3 $0.88 $29.34
4 $0.94 $28.12
5 $1.02 $36.05
6 $1.08 $29.95

a) Calculate the dividend yield, the capital gains yield and the total return for each year.

b) Calculate the arithmetic average rate of return for the 6 year period.

c) Calculate the geometric average rate of return for the 6 year period.

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