I posted this question already, but didn\'t understand the answer that was given
ID: 2745836 • Letter: I
Question
I posted this question already, but didn't understand the answer that was given. The answer is B 7.6%, can you please explain to me how to get this answer, I need to know how to solve these for my upcoming exam and I keep getting something different.
IGM Realty had a price of $30, $30, $35, $33, and $25 at the end of the last five quarters. If IGM pays a dividend of $2 at the end of each quarter, what is the annual realized return on IGM?
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I posted this question already, but didn't understand the answer that was given. The answer is B 7.6%, can you please explain to me how to get this answer, I need to know how to solve these for my upcoming exam and I keep getting something different.
A) 8.61%
B) 7.6%
C) 7.10%
D) 8.09%
SHOW ALL FORMULAS AND WORK
Thank you
Explanation / Answer
1+Rannual=(1+R1)(1+R2)(1+R3)(1+R4)
Rannual= (1+0.0666)*(1+0.23333)*(1+0.00)*(1+0.18181)
= 0.0764 or 7.64%