Question

XYZ stock price and dividend history are as follows:

Year Beginning-of-Year Price Dividend Paid at Year-End

2010 $120 $3

2011 $145 $3

2012 $115 $3

2013 $120 $3

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. $

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 #1

XYZ stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2010
$ 124
$ 4
2011
$ 135
$ 4
2012
$ 115
$ 4
2013
$ 120
$ 4
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...

XYZ stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2010
$ 124
$ 4
2011
$ 135
$ 4
2012
$ 115
$ 4
2013
$ 120
$ 4
XYZ stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2010
$ 124
$ 4
2011
$ 135
$ 4
2012
$ 115
$ 4...

XYZ stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2007
$ 340
$ 6
2008
$ 350
$ 6
2009
$ 330
$ 6
2010
$ 335
$ 6
An investor buys 3 shares of XYZ at the beginning of 2007, buys
another 2 shares at the beginning of 2008, sells 1 share at the
beginning of 2009, and sells all 4 remaining shares at...

XYZ stock price and dividend history are as follows: Year
Beginning-of-Year Price Dividend Paid at Year-End 2015 $ 106 $ 5
2016 101 5 2017 89 5 2018 94 5 An investor buys three shares of XYZ
at the beginning of 2015, buys another two shares at the beginning
of 2016, sells one share at the beginning of 2017, and sells all
four remaining shares at the beginning of 2018. a. What are the
arithmetic and geometric average time-weighted rates...

XYZ stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2015
$
116
$
4
2016
123
4
2017
105
4
2018
110
4
An investor buys four shares of XYZ at the beginning of 2015,
buys another two shares at the beginning of 2016, sells one share
at the beginning of 2017, and sells all five remaining shares at
the beginning of 2018.
a. What are the arithmetic and geometric average
time-weighted rates...

XYZ stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2015
$
104
$
2
2016
115
2
2017
90
2
2018
105
2
An investor buys three shares of XYZ at the beginning of 2015,
buys another one shares at the beginning of 2016, sells one share
at the beginning of 2017, and sells all three remaining shares at
the beginning of 2018.
a. What are the arithmetic and geometric average
time-weighted rates...

XYZ's stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2016
$
200
$
6
2017
220
6
2018
185
6
2019
200
6
An investor buys three shares of XYZ at the beginning of 2016,
buys another two shares at the beginning of 2017, sells one share
at the beginning of 2018, and sells all four remaining shares at
the beginning of 2019.
a. What are the arithmetic and geometric
average time-weighted rates...

XYZ's stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2017
$
180
$
4
2018
200
4
2019
170
4
2020
180
4
An investor buys three shares of XYZ at the beginning of 2017,
buys another two shares at the beginning of 2018, sells one share
at the beginning of 2019, and sells all four remaining shares at
the beginning of 2020.
a. What are the arithmetic and geometric
average time-weighted rates...

XYZ's stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2016
$
170
$
3
2017
200
3
2018
150
3
2019
170
3
An investor buys three shares of XYZ at the beginning of 2016,
buys another two shares at the beginning of 2017, sells one share
at the beginning of 2018, and sells all four remaining shares at
the beginning of 2019.
a. What are the arithmetic and geometric
average time-weighted rates...

Problem 24-6
XYZ stock price and dividend
history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at
Year-End
2013
$
100
$
4
2014
120
4
2015
90
4
2016
100
4
An investor buys three shares of XYZ at the beginning of 2013,
buys another two shares at the beginning of 2014, sells one share
at the beginning of 2015, and sells all four remaining shares at
the beginning of 2016.
b.
What is the...

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