Fin 315 Practice Problems: Stock Splits Suppose that someone purchased 100 shares of Adobe Systems common stock for $6.75 per share right after Adobe's IPO. Since then Adobe has had six 2:1 stock splits. Adobe is now, 40 years later, selling for $382 per share. (Exclude commission, and none of the shares have been sold.)

what is the average annual return?

how much of a bagger is the investment?

Fin 315 Pretice Problems Sock Splits thares have been sedia) Aaiwer 5.400 shars of ADin: 2. What is the splitedjusted prite paid for the stock? Answars 104 per share (.7564 return using total dollar enounts and find the returt uing the splif-acfjusted proice) 382=2444800 6751002444800675675002444125=36.213620 Answer: The return is 382106=3,819 4. What is the Avernge Annual Retum on the stockg (x+362.1)1/401 in. Answer The Average Annual Return is 15.88 5 5. How much of a "bagger" is the investment in Adobe? Answer: Fin 315 Pretice Problems Sock Splits thares have been sedia) Aaiwer 5.400 shars of ADin: 2. What is the splitedjusted prite paid for the stock? Answars 104 per share (.7564 return using total dollar enounts and find the returt uing the splif-acfjusted proice) 382=2444800 6751002444800675675002444125=36.213620 Answer: The return is 382106=3,819 4. What is the Avernge Annual Retum on the stockg (x+362.1)1/401 in. Answer The Average Annual Return is 15.88 5 5. How much of a "bagger" is the investment in Adobe