Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help getting the IRR. I put in the cashflow again and got 44.87% but want to double check if that's correct. Thanks! XYZ

image text in transcribed

image text in transcribed

I need help getting the IRR. I put in the cashflow again and got 44.87% but want to double check if that's correct.

Thanks!

XYZ stock price and dividend history are as follows: Dividend Paid at Year-End $ 4 Year 2015 2016 2017 2018 Beginning-of-Year Price $132 147 120 125 4 An investor buys five shares of XYZ at the beginning of 2015, buys another three shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all seven 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. Arithmetic mean 2.08 1.23 % % Geometric mean 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. (Negative amounts should be indicated by a minus sign.) Answer is complete and correct. Date 01/01/2015 01/01/2016 Cash Flow $ (660) (421) 152 903 01/01/2017 01/01/2018 b-2. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate internal rate of return, you will have to use a spreadsheet or trial and error.) (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.) Answer is complete but not entirely correct. Rate of return (0.9800) $ %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

The Private Equity Toolkit A Step By Step Guide To Getting Deals Done From Sourcing To Exit

Authors: Tamara Sakovska

1st Edition

1119697107, 978-1119697107

More Books

Students also viewed these Finance questions

Question

What is the basic structure of the Internet?

Answered: 1 week ago

Question

Which are non projected Teaching aids in advance learning system?

Answered: 1 week ago

Question

Define procedural justice. How does that relate to unions?

Answered: 1 week ago