Assume that you purchased one share XYZ on the last day of 2015 and sold...

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Accounting

Assume that you purchased one share XYZ on the last day of 2015 and sold that share on the last day of 2020. Below are the the series of stock prices and dividends (you can assume dividends are paid on the last day of the year) over that time period.

Date (Year-end) Stock Price (XYZ) Dividend per share
2015 $123.50 --
2016 $154.63 --
2017 $165.32 $4.00
2018 $162.30 $1.23
2019 $178.63 --
2020 $185.50 $3.23

Compute the following:

  1. The total return on your investment.
  2. The arithmetic average annual return.
  3. The annual geometric return.
  4. The portion of the return earned through capital gains.

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