Question

Given the following price and dividend information, calculate the $1 invested equivalent. (Round to 4 decimals)

Year	Price	Dividend
0	50.72
1	43.54	1.75
2	49.22	2.10
3	51.30	2.20
4	52.45	2.50
5	56.35	2.75

Answer 1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

C D E Dividend Return А в 1 2 Year 30 1 12 3 4 15 Price $50.72 $43.54 $49.22 $51.30 $52.45 $56.35 $1.75 $2.10 $2.20 $2.50 $2.75 -10.71% 17.87% 8.70% 7.12% 12.68% Annual rate of return 6.67% Invested Amount Value at Year 5 $1 $1.3808

Cell reference -

Year Price Dividend Return 1.75 50.72 43.54 49.22 51.3 52.45 56.35 =((C4-C3)+D4)/C3 =((C5-C4)+D5)/C4 =((C6-C5)+D6)/C5 =((C7-C6)+D7)/C6 =((C8-C7)+D8)/C7 2.75 Annual rate of return =PRODUCT((E4:E8+1))^(1/5)-1 Invested Amount Value at Year 5 =C12*(1+C1045

Hope it will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.