Problem
Two years ago, you purchased 100 shares of a cola company. Your purchase price was $56 a share, plus a commission of $7 per share, for a total cost of $63 per share. After one year, the stock's market value had risen to $64. At the end of two years, you sold your cola company stocks for $75 a share, less a per-share commission of $3. During the two years, you held the stock; you received dividends of $0.62 per share for the first year and $0.74 per share for the second year.
i. Calculate your annual shareholder return for each of the two years you owned the stock.
ii. Calculate your annual average compound return.