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The following table provides the end of year prices and dividend information for GDUB stock. At the end of each year 2014 to 2018, an
The following table provides the end of year prices and dividend information for GDUB stock.
At the end of each year 2014 to 2018, an investor purchases 100 shares of GDUB. At the end of 2019,the investor collects the last dividend and sells all shares
Year End of year price 2014 $ 2015 $ 2016 $ 2017 $ 2018 $ 2019 $ Dividend paid at end of year 60.00 $ 65.00 $ 72.00 $ 75.00 $ 68.00 $ 75.00 $ 1.00 1.10 1.25 1.25 1.30 1.30 A. [4 points] What is the arithmetic average time-weighted annual rate of return? B. [4 points] What is the geometric average time-weighted annual rate of return? C. [4 points] What is the dollar-weighted annual rate of return? A suggestion is to construct a chart of all cash flows.
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Year End of Year Price Dividend Cash Flow Shares Purchased Total Shares Total Investment 2014 6000 100 6100 100 100 610000 2015 6500 110 6610 100 200 ...Get Instant Access to Expert-Tailored Solutions
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