Answer:
Option B
Explanation:
In simple words, A stock dividend refers to the payout to owners that is rendered not in cash but in securities. Such kind of dividend payment has the benefit of satisfying stakeholders without decreasing the cash flow for the business. Usually, these dividends are decided to make as fragments paid out per existing securities in hand.
Whenever dividend is paid in stock is paid, the overall asset interest stays the very same on both the viewpoint of the lender and the viewpoint of the business. Both dividend payments therefore include a newspaper submission for the distribution issuing firm.
Answer:
Explanation:
Assume the initial invest at the beginning is $100.
The investment at end of year 4 is:
100 x 1.16 x 1.11 x 1.1 x 1.1 = 155.80
a) CAGR over the 4 years = (155.8 / 100 ) ^ (1/4) = 11.72%
b) Average annual return over 4 years = (16% +11% + 10% +10%) /4 = 11.75%
c) Since the returns over the 4 year period are not much volatile, average annual return is a better measure.
If the investment's returns are independent and identically distributed, Average annual return will be the better measure because there is no correlation between returns over the years and thus there is no point to take into consideration the compounding effect by using CAGR.
What poster are you referring to? There’s nothing there but the question
