Calculate the annual average capital appreciation rate

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Reference no: EM133067966

Bastion Technology is an information technology services provider. It currently operates primarily within the European marketplace, and therefore is not active or traded on any North American Stock Exchange. The company's share price and dividend distributions have been as follows in recent years.

Assumptions

6/30/2008

6/30/2009

6/30/2010

6/30/2011

Share price (£)

37.40

42.88

40.15

44.60

Dividend (£)

1.50

1.60

1.70

1.80

Spot rate ($/£)

1.8160

1.7855

1.8482

2.0164

Spot rate (€/£)

1.4844

1.4812

1.4472

1.4845

Using the data above, calculate the annual average capital appreciation rate on Bastion shares, as well as the average total return (including dividends) to a British pound-based investor holding the shares for the entire period shown. 

Reference no: EM133067966

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