Question
An investor buys one share of a stock at the end of year 0, buys another share at the end of year 1, sells both
An investor buys one share of a stock at the end of year 0, buys another share at the end of year 1, sells both shares at the end of year 2. The stocks price and dividend per share history is as follows:
| The End of Year | Price | Dividends |
| 0 | 50 | |
| 1 | 53 | 2 |
| 2 | 54 | 2 |
What is the dollar weighted rate of return for the investors investment?
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Valuation Workbook
Authors: Tim Koller, Marc Goedhart, David Wessels, Jeffrey P. Lessard, McKinsey & Company
4th Edition
0471702161, 978-0471702160
