Using CRSP data, I tried to compute the historical returns (including dividends) of stocks according to
Total Return = (adjprc + (divamt / cumfacpr / facpr)) / prev_adjprc – 1,
where divamt is the dividend amount in period, cumfacpr is the cumulative factor to adjust prices over a date range, facpr is the factor to adjust price in period, adjprc is the price adjusted at the end of period, prev_adjprc is the price adjusted at the end of previous period (see https://www.crsp.org/products/documentation/crsp-calculations). But I see often such cases:
Does somebody known why RET = RETX = adjprc / prev_adjprc – 1? I thought RET correspond to returns including dividends and should be equal to Total Return as defined above?
Furthermore, I found:
Here RET = (adjprc + (divamt / cumfacpr)) / prev_adjprc – 1 > RETX, which implies that facpr should be equal to 1, although the above table states facpr=0 (which means Total Return cannot be computed as shown above as we would divide by zero).
Could someone explain that to me, please? :)