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Problem 5-7 XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price $ 130 Dividend Paid at Year-End $ 5 2015 2016 2017

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Problem 5-7 XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price $ 130 Dividend Paid at Year-End $ 5 2015 2016 2017 2018 An investor buys six 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 eight 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.) Arithmetic mean 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.) 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.) Cash Flow Date 01/01/2015 01/01/2016 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.) Rate of return

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