On January 1, Year 1 you bought 100 shares of Cyberdyne Systems Inc. It is now January 1 of Year 2. You have recorded stock price and dividend information for Cyberdyne in the table, below. You want to calculate your return on the investment. After digging through your records you realize that Cyberdyne executed a 2-for-1 stock split late in Year 1. Use this information to adjust the data in the table and calculate the split-adjusted annual return on the investment in Cyberdyne shares. Selected Financial Data
Cyberdyne Systems Inc.
$$\begin{array} { | c | c | c | }
\hline & \text { Price } & \text { Dividend } \
\hline \operatorname { Jan } \text { 1,Year 1 } & \$ 12 & \
\hline \operatorname { Jan } \text { 1, Year 2 } & \$ 8 & 0.40 \
\hline
\end{array}$$

Question

On January 1, Year 1 you bought 100 shares of Cyberdyne Systems Inc. It is now January 1 of Year 2. You have recorded stock price and dividend information for Cyberdyne in the table, below. You want to calculate your return on the investment. After digging through your records you realize that Cyberdyne executed a 2-for-1 stock split late in Year 1. Use this information to adjust the data in the table and calculate the split-adjusted annual return on the investment in Cyberdyne shares. Selected Financial Data
Cyberdyne Systems Inc.
$$\begin{array} { | c | c | c | } 
\hline & \text { Price } & \text { Dividend } \
\hline \operatorname { Jan } \text { 1,Year 1 } & \$ 12 & \
\hline \operatorname { Jan } \text { 1, Year 2 } & \$ 8 & 0.40 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of On January 1, Year 1 you bought 100 shares of Cyberdyne Systems Inc. It is now January 1 of Year 2. You have recorded stock price and dividend information for Cyberdyne in the table, below. You want to calculate your return on the investment. After digging through your records you realize that Cyberdyne executed a 2-for-1 stock split late in Year 1. Use this information to adjust the data in the table and calculate the split-adjusted annual return on the investment in Cyberdyne shares. Selected Financial Data
Cyberdyne Systems Inc.
$$\begin{array} { | c | c | c | } 
\hline & \text { Price } & \text { Dividend } \
\hline \operatorname { Jan } \text { 1,Year 1 } & \$ 12 & \
\hline \operatorname { Jan } \text { 1, Year 2 } & \$ 8 & 0.40 \
\hline
\end{array}$$

On January 1, Year 1 You Bought 100 Shares of Cyberdyne