Two years ago, you purchased 100 shares of a cola company. Your purchase price was $50 a

Question:

Two years ago, you purchased 100 shares of a cola company. Your purchase price was $50 a share, plus a commission of $5 per share, for a total cost of $55 per share. After one year, the market value had risen to $58. At the end of two years, you sold your cola company for $68 a share, less a per-share commission of $2. During the two years you held the stock, you received dividends of $0.56 per share for the first year and $0.68 per share for the second year.
a) Calculate your annual shareholder return for each of the two years you owned the stock.
b) Calculate your annual average compound return.
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...