Problem 11-7 Calculating Annual Shareholder Return and Annual Average Compound Return [LO3] Two years ago, you purchased

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Problem 11 7 Calculating Annual Shareholder Return And Annual Average Compound Return Lo3 Two Years Ago You Purchased 1 (97.82 KiB) Viewed 32 times

Problem 11-7 Calculating Annual Shareholder Return and Annual Average Compound Return [LO3] Two years ago, you purchased 100 shares of a cola company. Your purchase price was $56 a share, plus a commission of $7 per share, for a total cost of $63 per share. After one year, the stock's market value had risen to $64. At the end of two years, you sold your cola company stocks for $75 a share, less a per-share commission of $3. 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