i Saved Help Save & Exit Submit Problem 11-7 Calculating Annual Shareholder Return and Annual Average Compound Return [LO3] 4 Two years ago, you purchased 100 shares of a cola company. Your purchase price was $64 a share, plus a commission of $6 per share, for a total cost of $70 per share. After one year, the stock's market value had risen to $72. At the end of two years, you sold your cola company stocks for $76 a share, less a per-share commission of $4. During the two years you held the stock, you received dividends of $0.66 per share for the first year and $0.72 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 3.8 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 % 3 points r References

Q&A Education