Exhibit 55
Use the Information Below for the Following Problem(S)

question 55

Multiple Choice

Exhibit 5.5
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c c c c } \text { Stack } & \begin{array} { c } \text { 31-Dec-03 } \\\text { Price }\end{array} & \begin{array} { c } \text { 31-Dec-03 } \\\text { Shares }\end{array} & \begin{array} { c } \text { 31-Dec-04 } \\\text { Price }\end{array} & \begin{array} { c } \text { S1-Dec-04 } \\\text { Shares }\end{array} \\\hline W & \$ 75.00 & 10000 & \$ 50.00 & 20000 \\X & \$ 150.00 & 5000 & \$ 65.00 & 10000 \\Y & \$ 2500 & 20000 & \$ 35.00 & 20000 \\Z & \$ 20.00 & 25000 & \$ 50.00 & 25000\end{array}$$
Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003.
-Refer to Exhibit 5.5.Calculate the percentage return in the unweighted index (geometric mean) for the period Dec 31,2003 to Dec 31,2004.Assume a base index value of 100.Base year is Dec 31,2003.

• A) 19.25%
• B) 21.25%
• C) 51.25%
• D) 5.25%
• E) 100.25%

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Definitions:

Growth Determinant

A factor that is critical to the expansion of a company or economy, such as technology, capital, and human resources.

Retained Earnings

Profits that a company chooses not to distribute as dividends but instead reinvests into the business or uses to pay off debt, reflecting the accumulated surplus from business operations.

Dividend Payout Ratio

The fraction of net earnings a firm pays to its shareholders as dividends, usually expressed as a percentage.

Profit Margin

A measure of profitability calculated as net income divided by revenue.