In July of 2012, Taylor purchased 2,000 shares of XYZ common stock for $75,000. He then sold

Question:

In July of 2012, Taylor purchased 2,000 shares of XYZ for $75,000. He then sold 1,000 shares of XYZ in July of 2013 for $39 per share. The remaining 1,000 shares were finally sold for $50 per share in July 2014.
a. Draw a cash-flow diagram of this situation.
b. What was Taylor's (IRR) on this investment?
c. What was the ERR on this investment if the external reinvestment rate is 8% per year?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...