Question
In july of 2012, Taylor purchased 1800 shares XYZ common stock for $75,800. He then sold 500 shares of XYZ in july of 2013 for
In july of 2012, Taylor purchased 1800 shares XYZ common stock for $75,800. He then sold 500 shares of XYZ in july of 2013 for $74 per share. The reamining 1300 shares were finally sold for $40.77 per sharein july 2014.
A) Draw a cash-flow diagram of this situation.
B) What was Taylor's internal rate of return (IRR) on this investment?
C) What was the ERR on this investment if the external revinestment rate is 8% per year?
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Financial Literacy And Money Script A Caribbean Perspective
Authors: Christine Sahadeo
1st Edition
3319770748, 978-3319770741
