Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. xyz stock price and dividend history are as follow

XYZ stock price and dividend history are as follows: Year Beginning-of-Year...

50.1K

Verified Solution

Question

Finance

XYZ stock price and dividend history are as follows:

Year Beginning-of-Year Price Dividend Paid at Year-End
2010 $ 120 $ 2
2011 $ 129 $ 2
2012 $ 115 $ 2
2013 $ 120 $ 2

An investor buys six shares of XYZ at the beginning of 2010, buys another two shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all seven remaining shares at the beginning of 2013.

a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Arithmetic mean %
Geometric mean %

b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2010, to January 1, 2013. (Negative amounts should be indicated by a minus sign.)

Date Cash Flow
1/1/2010 $
1/1/2011
1/1/2012
1/1/2013

b-2. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate internal rate of return, you will have to use a spreadsheet or trial and error.) (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.)

Rate of return %

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Give a specific example of how the cytoskeleton functions in movement of a cellular component or...

Biology
Q

Steel is used as a roofing material in a chemical refinery located in Darwin, Northern Territory....

Mechanical Engineering
Q

Carrier proteins, ke enzymes, are not substrate-specific.TrueFalse

Biology
Q

people You are an epidemiologist visiting an isolated village in the sub Saharan African nation...

Biology
Q

30 A 50 cm long wire of mass 20 g supports a mass of 1...

Physics
Q

Peter saw Lara Jean running on the school's track field. He accelerates from rest to...

Physics
Q

Solve graphically 1 x 4 1 x Graph y1 4 and y2 1 x using...

Algebra
Q

In the MW partnership, M's capital is $140,000 and W's is $40,000 and they share...

Accounting
Q

Vibrant Company had $850.000 of sales in each of three consecutive years 2016-2018, and it...

Accounting
Q

You are evaluating a project for The Tiff-any golf club, guaranteed to correct that nasty...

Accounting
Q

27. When bonds are issued at a premium: A. interest expense on the bonds will...

Accounting
Q

Please help me out! I am confused. If your firm's cost of capital...

Finance