Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribed

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 801

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: kieso, weygandt and warfield.

14th Edition

9780470587232, 470587288, 470587237, 978-0470587287

Students also viewed these Finance questions