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Could you please help me to understand why my answer is wrong? Since I took into consideration the payments for dividends. Thank you. XYZ stock
Could you please help me to understand why my answer is wrong? Since I took into consideration the payments for dividends. Thank you.
XYZ stock price and dividend history are as follows: Year 2015 2016 2017 2018 Beginning-of-Year Dividend Paid at Year- Price End $134 $ 3 150 3 125 3 130 3 An investor buys five 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 six remaining shares at the beginning of 2018. 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.) Answer is complete and correct. 1.97% Arithmetic mean Geometric mean 1.21 % b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2015, to January 1, 2018. Answer is complete but not entirely correct. Answer is complete but i X Answer is complete but Date Date Cash Flow Cash Flow $ (670) Date Cash Flow $ 01/01/2015 01/01/2016 01/01/2015 01/01/2016 01/01/2015 $ (285) (670) (285) 125 x 01/01/2016 (670) (285) 128 x 01/01/2017 131 x 01/01/2017 01/01/2017 01/01/2018 01/01/2018 801 801 01/01/2018 801Step by Step Solution
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