Question

Suppose you purchase one share of stock at the beginning of the year 1 for $50....

Suppose you purchase one share of stock at the beginning of the year 1 for $50. At end if year 1, you receive a $1 dividend and buy one more share for $72. At the end of year 2 you receive total dividends of $2 and sell the shares for $67.20 each. The dollar weighted return on your investment is?

(Please show detailed steps in how you arrived at the answer)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

EXCEL IS USED TO FIND IRR.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
2.  Suppose that you purchase 100 shares of GM stock at the beginning of year 1, and...
2.  Suppose that you purchase 100 shares of GM stock at the beginning of year 1, and purchase another 100 shares at the end of year 1. You sell all 200 shares at the end of year 2.  Assume that the price of GM was $50 at the beginning of year 1, $55 at the end of year 1 and $66 at the end of year 2. What is the arithmetic mean time-weighted return?  What is geometric mean time-weighted return? What is the...
Suppose that you buy 450 shares of stock at an initial price of $50 per share....
Suppose that you buy 450 shares of stock at an initial price of $50 per share. The stock pays a dividend of $0.52 per share during the following year, and the share price at the end of the year is $52. Calculate the following: The capital gains yield for the year The dividend yield The total rate of return on the investment for the holding period The total dollar return for the year (5 points) Assume that the return of...
Suppose you buy 2000 shares of Air NZ at the beginning of year 1 for $8....
Suppose you buy 2000 shares of Air NZ at the beginning of year 1 for $8. Air NZ pays no dividends. The stock price at the end of year 1 is $10, $12 at the end of year 2, and $15 at the end of year 3. The stock price declines to $10 at the end of year 4, and you sell your 2000 shares. For the four years, your geometric average return is closest to Select one: a. 0.0%....
1) A) At the beginning of last year, you invested $4000 in 80 shares of the...
1) A) At the beginning of last year, you invested $4000 in 80 shares of the Chang Corp. During the year, chang paid dividends of $5 per share. At the end of the year, you sold the 80 shares for $59 a share. Compute your total HPY on these shares and indicate how much was due to the price change and how much was due to the dividend income ANSWER FOR A: =[ $5 + (59 - 50)] / 50...
1) A year ago you bought 100 shares of Bradley Corp. common stock for $32 per...
1) A year ago you bought 100 shares of Bradley Corp. common stock for $32 per share. During the year, you received dividends of $2.50 per share. The stock is currently selling for $33.50 per share. What was your total dividend income during the year? How much was your capital gain? Your total dollar return? 2) Suppose you expect the Bradley Corporation common stock in Problem 1 to be selling for $33 per share in one year, and during the...
XYZ's stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...
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...
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...
Assume that you plan to buy a share of XYZ stock today and to hold it...
Assume that you plan to buy a share of XYZ stock today and to hold it for 2 years. Your expectations are that you will not receive a dividend at the end of Year 1, but you will receive a dividend of $8.25 at the end of Year 2. In addition, you expect to sell the stock for $100 at the end of Year 2. If your expected rate of return is 16 percent, how much should you be willing...
XYZ's stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...
XYZ's stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2016 $ 80 $ 2 2017 90 2 2018 70 2 2019 80 2 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. . What is the dollar-weighted rate of return? (Hint: Carefully...
Problem 24-6 XYZ stock price and dividend history are as follows:    Year Beginning-of-Year Price Dividend...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT